New Neoclassical Synthesis

E53272

macroeconomic framework macroeconomic theory research program in macroeconomics

The New Neoclassical Synthesis is a macroeconomic framework that blends key elements of New Keynesian and New Classical theories, using microfounded models with rational expectations and nominal rigidities to analyze monetary and fiscal policy.

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Observed surface forms (2)

Surface form	Occurrences
New Neoclassical Synthesis (NNS)	1
New neoclassical synthesis	1

Statements (49)

Predicate	Object
instanceOf	macroeconomic framework ⓘ macroeconomic theory ⓘ research program in macroeconomics ⓘ
analyzes	business cycles ⓘ fiscal policy ⓘ inflation dynamics ⓘ monetary policy ⓘ output fluctuations ⓘ
combinesElementsOf	New Classical macroeconomics ⓘ New Keynesian economics ⓘ
contrastsWith	old Keynesian macroeconometric models ⓘ traditional Keynesian IS–LM models ⓘ
emergedInPeriod	1990s ⓘ late 20th century ⓘ
emphasizes	expectations formation ⓘ intertemporal optimization by households and firms ⓘ microfoundations for macroeconomic relationships ⓘ
field	macroeconomics ⓘ
hasAlternativeName	New Neoclassical Synthesis ⓘ surface form: New Neoclassical Synthesis (NNS)
hasKeyConcept	forward-looking behavior of agents ⓘ nominal rigidities with rational expectations ⓘ policy evaluation in fully specified models ⓘ welfare-based policy analysis ⓘ
includesFeature	imperfect competition ⓘ monetary non-neutrality in the short run ⓘ nominal rigidities ⓘ price stickiness ⓘ wage stickiness ⓘ
influenced	New Keynesian DSGE models used by policy institutions ⓘ inflation targeting frameworks ⓘ modern central bank macroeconomic models ⓘ
isAssociatedWith	DSGE modeling ⓘ Phillips curve framework ⓘ surface form: New Keynesian Phillips curve Taylor rule ⓘ inflation targeting ⓘ output gap ⓘ
isBasedOn	dynamic stochastic general equilibrium models ⓘ intertemporal general equilibrium ⓘ representative agent models ⓘ
sharesFeatureWith	New Classical macroeconomics ⓘ New Keynesian economics ⓘ real business cycle theory ⓘ
supportsView	central banks should follow systematic policy rules ⓘ inflation is ultimately a monetary phenomenon ⓘ monetary policy affects real activity in the short run ⓘ money is neutral in the long run ⓘ
usesAssumption	intertemporal optimization ⓘ microfoundations ⓘ rational expectations ⓘ

Referenced by (3)

Full triples — surface form annotated when it differs from this entity's canonical label.

New Neoclassical Synthesis → hasAlternativeName → New Neoclassical Synthesis ⓘ

this entity surface form: New Neoclassical Synthesis (NNS)

Keynesian economics → influenced → New Neoclassical Synthesis ⓘ

this entity surface form: New neoclassical synthesis

New Keynesian economics → influenced → New Neoclassical Synthesis ⓘ