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On rhetoric and being realistic about the monetary policy of developing countries

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  • Jan Toporowski

Abstract

This paper focuses on economists' aspirations to apprehend the reality of the economy that they seek to study, while economic processes are largely beyond the boundaries of perception. It is recognized that engaging in dialogue with each other and with policymakers forces economists into compromise with conventional wisdom by rhetoric. We explore how questions beyond the boundaries of realist perception are commonly tackled in contemporary monetary analysis by axiomatic reasoning and mimesis (the proliferation of models that can mimic the evolution of particular variables). This provides a shared numerical discourse, but cannot overcome the problem of realistic understanding. It is argued that this is a particular difficulty in the case of monetary policy in emerging and developing countries, where policy dependence on external financial support places a premium on the rhetorical conventions of global financial centres. JEL Classifications: B41, E42, O16

Suggested Citation

  • Jan Toporowski, 2007. "On rhetoric and being realistic about the monetary policy of developing countries," Journal of Economic Methodology, Taylor & Francis Journals, vol. 14(1), pages 47-55.
    • Handle: RePEc:taf:jecmet:v:14:y:2007:i:1:p:47-55
    DOI: 10.1080/13501780601170057
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    References listed on IDEAS

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    1. Veblen, Thorstein, 1904. "Theory of Business Enterprise," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number veblen1904.
    2. Machlup, Fritz, 1978. "Methodology of Economics and Other Social Sciences," Elsevier Monographs, Elsevier, edition 1, number 9780124645509 edited by Shell, Karl.
    3. Bindseil, Ulrich, 2004. "Monetary Policy Implementation: Theory, past, and present," OUP Catalogue, Oxford University Press, number 9780199274543.
    4. Sheila C. Dow, 1996. "The Methodology of Macroeconomic Thought," Books, Edward Elgar Publishing, number 933.
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    More about this item

    Keywords

    Rhetoric; realism; monetary policy; development;
    All these keywords.

    JEL classification:

    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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