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"John Maynard Keynes' response to the extreme distress of the early years of the Great Depression produced The General Theory, which represented an overhaul of the macroeconomics inherited by his generation. The economic upheaval (including the Great Recession) since 2008 raised serious doubts about the relevance of economics as it had come to be formulated and taught by the beginning of this century. While numerous books and articles have addressed the current distress of economies through contributions to specific parts of macroeconomics, none has offered an attractive alternative that represents a general overhaul of the macroeconomics inherited by the current generation. A Reformulation of Keynesian Economic does so, and provides a modern integrated version of macroeconomics for the modern economies as they function. This book's many insights and innovations include: discarding the classical concepts of the long run and the short run in favour of the behavioural concepts of the planning period (the long term) and the short term (the operating period); discarding the exogenous production function in favour of an endogenous one; distinguishing between the short-term and the long-term production functions; replacing the dynamic stochastic notional general equilibrium (DSGE) approach for the short term by a more general one that permits effective equilibrium and disequilibrium in specific markets; and, a reformulation of the financial sector analysis and of the Keynesian business cycle theory. This thoroughgoing revision of macroeconomics is must-read for macroeconomists, policymakers and graduate students. It can even be used as a textbook by instructors who question the inherited orthodoxy built around the DSGE model and are looking for an alternative formulation of macroeconomics."--

This book develops a macroeconomic model to analyse the effects of external shocks - such as the worsening of the terms of trade, the reduced demand for exports and high world interest rates - on the current account of the balance of payments in Kenya for the period 1973-1988. The authors examine both government policy and private responses to them. (DÜI-Hff)

This paper uses two different criteria -- a set of macroeconomic indicators and the intertemporal model of the current account -- to examine the excessiveness and sustainability of Nigerian current account deficits over the period 1960-2003. Our analysis shows excessive reliance on oil revenues, misperception of temporary increases in oil prices as permanent ones and structural weaknesses of the economy resulting in unsustainable current account deficits and external crisis, necessitating the adoption of the Structural Adjustment Program in 1986. However, both the macroeconomic indicators and the intertemporal model point to an improved current account position over the past decade. The paper also presents empirical results from the application of the Present Value Model of the Current Account (PYMCA) to Nigeria. Comparison of the estimated optimal and actual current account balances shows several years with excessive current account deficits. Further, these excessive current account deficits were driven by consumption tilting.

This paper examines the appropriate formulation of the monetary aggregate for the Nigerian economy for the period 1970:1-2000:4 for the determination of real output. This examination covers simple sum, Variable Elasticity of Substitution (VES) and Divisia (DV) aggregation over currency, demand deposits and savings deposits. The user cost of liquid assets is employed in the construction of both the DV and the VES aggregates. Since our variables proved to be I(1), the Johansen cointegration and error-correction modelling technique were used. Our findings for the Nigerian economy are that currency does as well as or better than any narrow- or broad-money measure in explaining industrial production. Further, the simple sum M1 and M2 outperformed both the VES and Divisia aggregates. Therefore, monetary policy in Nigeria should focus on the supply of currency and/or of narrow money, rather than on broad money or the Divisia aggregates.