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Macroeconomic Theory, Policy, and Modeling

The central focus in this research area is the use of the Levy Institute's macro-economic models in generating strategic analyses of the US, euro area, and world economies. The outcomes of alternative scenarios are projected and analyzed, with the results serving to help policymakers understand the implications of the available policy options. 

The Levy Institute macroeconomic models, created by the late Distinguished Scholar Wynne Godley, are accounting based. The US model employs a complete and consistent system (in that all sectors “sum up”) of stocks and flows (such as income, production, and wealth). The world model is a “closed” system in which 11 trading blocs—of which the United States, China, Japan, and Western Europe are four—are represented. Each bloc’s imports are described in terms of exports from the other 10 blocs. From this information, and using alternative assumptions (e.g., growth rates and trade shares), trends are identified and trade and production patterns assessed. 

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Core Team

Dimitri B. Papadimitriou 

Dimitri B. Papadimitriou 

President, Levy Economics Institute

Michalis Nikiforos

Michalis Nikiforos

Research Scholar, Levy Economics Institute

Gennaro Zezza

Gennaro Zezza

Research Scholar, Levy Economics Institute