ABSTRACT
This chapter lays out a higher-dimensional macrostructure that integrates many aspects of more or less traditional Keynesian macrodynamics. There is now the disposal an integrated and fairly complete framework for the dynamic analysis of a demand-driven growing economy, where in addition supply-side features of macrodynamic model-building are incorporated. Our main concern, however, are demand-side issues where we want to study numerous more or less well-known feedbacks with respect to their stability implications in isolation as well as in partial loops or full interaction with the others. The chapter is intended to provide an advanced theoretical framework for the analysis of large economies, for example such as the Eurozone economy. It will be a framework, however, that needs further improvement and extension, for example with respect to the openness of the economy, interregional trade and regional fiscal policies, in place of or in addition to the aggregated fiscal policy considered in this chapter.
