New Keynesian economics
E9569
New Keynesian economics is a modern macroeconomic framework that incorporates rational expectations and micro-founded price and wage rigidities to explain short-run economic fluctuations and justify active stabilization policy.
All labels observed (12)
Statements (50)
| Predicate | Object |
|---|---|
| instanceOf |
Keynesian economics tradition
ⓘ
macroeconomic school of thought ⓘ |
| aimsToExplain | short-run economic fluctuations ⓘ |
| associatedWithEconomist |
David Romer
ⓘ
Gregory Mankiw ⓘ John B. Taylor ⓘ Jordi Galí ⓘ Michael Woodford ⓘ Olivier Blanchard ⓘ Stanley Fischer ⓘ |
| contrastsWith | New Classical macroeconomics ⓘ |
| developedFrom |
Old Keynesian economics
ⓘ
neoclassical synthesis ⓘ |
| emergedInPeriod |
1980s
ⓘ
late 1970s ⓘ |
| emphasizes |
forward-looking behavior
ⓘ
importance of expectations ⓘ market imperfections ⓘ non-neutrality of money in the short run ⓘ price rigidities ⓘ role of monetary policy in stabilization ⓘ wage rigidities ⓘ |
| hasTheoreticalBasisIn | microfoundations ⓘ |
| includesFeature |
Calvo pricing
ⓘ
efficiency wages ⓘ menu costs ⓘ monopolistic competition in goods markets ⓘ |
| incorporates |
imperfect competition
ⓘ
nominal rigidities ⓘ sticky prices ⓘ sticky wages ⓘ |
| influenced |
New Neoclassical Synthesis
ⓘ
modern central bank policy analysis ⓘ |
| justifiesPolicy | active stabilization policy ⓘ |
| respondsTo |
Lucas critique
ⓘ
failures of traditional Keynesian models ⓘ |
| supportsPolicy |
countercyclical fiscal policy
ⓘ
inflation targeting ⓘ monetary policy rules ⓘ |
| supportsView | systematic monetary policy affects real output in short run ⓘ |
| typicallyAssumes |
representative agent households
ⓘ
representative firm behavior ⓘ |
| usesAssumption | rational expectations ⓘ |
| usesConcept |
natural rate of interest
ⓘ
output gap ⓘ |
| usesModel | dynamic stochastic general equilibrium models ⓘ |
| usesTool |
Euler equations
ⓘ
Phillips curve framework ⓘ
surface form:
Phillips curve
intertemporal optimization ⓘ |
| viewsBusinessCyclesAs | result of nominal and real rigidities ⓘ |
Referenced by (42)
Full triples — surface form annotated when it differs from this entity's canonical label.
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New Keynesian Phillips curve
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New Keynesian Phillips curve
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The New Keynesian Approach to Monetary Policy
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New Keynesian macroeconomic theory
this entity surface form:
New Keynesian Phillips curve
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microfoundations of macroeconomics
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New Keynesian Economics (with David H. Romer and others)
this entity surface form:
New Keynesian economics tradition
this entity surface form:
New Keynesian
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New Keynesian monetary theory
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New Keynesian models
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New Keynesian models
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Lectures on Macroeconomics
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New Keynesian models
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New Keynesian Phillips curve
Technology, Employment, and the Business Cycle: Do Technology Shocks Explain Aggregate Fluctuations?
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relatedTo
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New Keynesian economics
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this entity surface form:
New Keynesian macroeconomics
The New Keynesian Phillips Curve: Time Series Evidence from the Euro Area
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relatedTo
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New Keynesian economics
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this entity surface form:
New Keynesian models
graduate-level macroeconomics textbook Advanced Macroeconomics
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subject
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New Keynesian economics
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subject surface form:
Advanced Macroeconomics
this entity surface form:
New Keynesian models
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New Keynesian
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New Keynesian school of macroeconomics