New Keynesian economics, nominal rigidities and involuntary unemployment

1999 ◽  
Vol 6 (2) ◽  
pp. 221-238 ◽  
Author(s):  
Huw Dixon
Keyword(s):  
New Keynesian ◽  
Nominal Rigidities ◽  
Involuntary Unemployment ◽  
Keynesian Economics

Leijonhufvud on New Keynesian Economics and the economics of Keynes

2020 ◽  
Vol 72 (4) ◽  
pp. 923-945 ◽  
Author(s):  
Hans-Michael Trautwein
Keyword(s):  
Financial Crises ◽  
Financial Frictions ◽  
New Keynesian ◽  
Nominal Rigidities ◽  
Continuity And Change ◽  
Keynesian Economics ◽  
Macroeconomic Instability ◽  
Made In

Abstract The theme that Axel Leijonhufvud has extracted from the economics of Keynes is the potential for failures in the intertemporal coordination of activities in complex market systems. In his path-breaking book of 1968, he attacked standard Keynesian Economics for its view on frictions, which reduces the causes of macroeconomic pathologies to nominal rigidities. With the rise of DSGE-based New Keynesian Economics, Leijonhufvud has pointed out that ‘standard macroeconomics’ is still stuck in the frictions view. Referring to recent financial crises, he considers DSGE modelling to be hopelessly inadequate for dealing with such macroeconomic instability. Yet, the financial frictions literature in New Keynesian Economics claims to have found ways to incorporate financial crises into DSGE frameworks. The article describes continuity and change in Leijonhufvud’s critique of Old and New Keynesians, and assesses contrary claims to progress made in the DSGE world.

New-Keynesian economics today

1997 ◽  
Author(s):  
Brian Snowdon ◽  
Howard Vane
Keyword(s):  
New Keynesian ◽  
Keynesian Economics

scholarly journals The State of New Keynesian Economics: A Partial Assessment

2018 ◽  
Vol 32 (3) ◽  
pp. 87-112 ◽  
Author(s):  
Jordi Galí
Keyword(s):  
Interest Rates ◽  
Global Financial Crisis ◽  
Academic Research ◽  
The State ◽  
New Keynesian ◽  
Future Research ◽  
New Keynesian Model ◽  
Keynesian Economics ◽  
Keynesian Model ◽  
Dynamic Stochastic

In August 2007, when the first signs emerged of what would come to be the most damaging global financial crisis since the Great Depression, the New Keynesian paradigm was dominant in macroeconomics. Ten years later, tons of ammunition has been fired against modern macroeconomics in general, and against dynamic stochastic general equilibrium models that build on the New Keynesian framework in particular. Those criticisms notwithstanding, the New Keynesian model arguably remains the dominant framework in the classroom, in academic research, and in policy modeling. In fact, one can argue that over the past ten years the scope of New Keynesian economics has kept widening, by encompassing a growing number of phenomena that are analyzed using its basic framework, as well as by addressing some of the criticisms raised against it. The present paper takes stock of the state of New Keynesian economics by reviewing some of its main insights and by providing an overview of some recent developments. In particular, I discuss some recent work on two very active research programs: the implications of the zero lower bound on nominal interest rates and the interaction of monetary policy and household heterogeneity. Finally, I discuss what I view as some of the main shortcomings of the New Keynesian model and possible areas for future research.

scholarly journals The role of taxes as automatic destabilizers in New Keynesian economics

2003 ◽  
Vol 87 (5-6) ◽  
pp. 1123-1136 ◽  
Author(s):  
Henrik Jacobsen Kleven ◽  
Claus Thustrup Kreiner
Keyword(s):  
New Keynesian ◽  
Keynesian Economics

The New Keynesian Economics and the Output-Inflation Trade-Off

1988 ◽  
Vol 1988 (1) ◽  
pp. 1 ◽  
Author(s):  
Laurence Ball ◽  
N. Gregory Mankiw ◽  
David Romer ◽  
George A. Akerlof ◽  
Andrew Rose ◽  
...  
Keyword(s):  
New Keynesian ◽  
Trade Off ◽  
Keynesian Economics
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