ABSTRACT
This conclusion presents an overview of key concepts covered in the preceding chapters of this book. This chapter briefly describes some baseline scenarios from which such research may start in order to exploit the rich potential which characterizes this macro approach to economic fluctuations and growth. It is also to be noted that, from the policy perspective, since policy is mostly referring to low-dimensional dynamics, there might be further feedback loops that can make the expected policy effects quite uncertain. Intrinsic and extrinsic nonlinearities must therefore be found that can be justified on empirical grounds and that bound the amplifying forces far away from the steady state. A prominent candidate in this regard is a kink in the money wage Phillips curve representing the fact that wages are upwardly flexible, but downwardly rigid. There may even be barriers to very low wage inflation rates, as was observed by Hoogenveen and Kuipers.
