Macroeconomics - Which Way Now? Old versus New Styles

This paper contrasts the new style of doing macroeconomics, where the emphasis is on propositions rigorously derived from neoclassical micro foundations, with the old style associated with the work of Keynes in particular. The paper argues that the latter type of model, which is based on more realistic albeit informal behavioural micro foundations, is better suited to the concerns of policy makers. However, emphasis on the new style has led to an abandonment of research on adapting the old paradigms to new concerns, with a consequent loss for practical policy making especially with respect to macro stabilization. A perspective on how the new style can and cannot be helpful is provided.macroeconomic policy, neoclassical micro foundations, behavioural psychology

Reform options for pay-as-you-go public pension systems

Public pension schemes in many countries are predominantly of a pay-as-you-go (PAYG) type, particularly in advanced and transition economies. This paper reviews the types of stresses that PAYG systems can experience and discusses a range of policy options to preserve the financial stability of public PAYG systems. Section 1 introduces the basic policy levers of a stylized PAYG system. Section 2 discusses the key short- and long-run financial challenges faced by PAYG systems. Section 3 covers parametric adjustments in the basic PAYG policy levers as well as administrative reforms. Section 4 describes broader reform strategies for maintaining financial equilibrium in a PAYG system including the option of partial funding.Pensions&Retirement Systems,Environmental Economics&Policies,Economic Stabilization,Banks&Banking Reform,National Governance

Charge pumping in monolayer graphene driven by a series of time-periodic potentials

We applied the Floquet scattering-matrix formalism to studying the electronic transport properties in a mesoscopic Dirac system. Using the method, we investigate theoretically quantum pumping driven by a series of time-periodic potentials in graphene monolayer both in the adiabatic and non-adiabatic regimes. Our numerical results demonstrate that adding harmonic modulated potentials can break the time reversal symmetry when no voltage bias is applied to the graphene monolayer. Thus, when the system is pumped with proper dynamic parameters, these scatterers can produce a nonzero dc pumped current. We also find that the transmission is anisotropic as the incident angle is changed.Comment: 8 pages, 6 figure

The IMF, the credit crunch and Iceland: A new fiscal saga?

Iceland was badly hit by a fundamental mismatch between the assets and international liabilities of her banking system, with severe consequences for the welfare of the population. The country now has an IMF program. The paper asks three questions of the program: is it too tight? Is the balance of payment’s target appropriate? How will the country cope with the potentially huge transfer problem associated with the now frozen external liabilities of the failed Icelandic banks? The paper notes several problems and argues that an appropriately structured and expanded fiscal policy is needed, together with burden sharing between Iceland and the international communit