New model shows how policies can sustain economic growth and stability
The article explores how combining Keynesian demand theories with Schumpeterian growth theories can help understand economic dynamics. By using an agent-based model, the researchers found that factors influencing demand and technological change impact economic fluctuations and long-term growth. They discovered that a mix of Keynesian and Schumpeterian policies can sustain steady growth with low unemployment rates. The study suggests that matching innovative technology exploration with demand conditions leads to different growth patterns and levels of unemployment.