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costs and imperfect competition</span> </div> </a> <ul id="toc-Menu_costs_and_imperfect_competition-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-The_Calvo_staggered_contracts_model" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#The_Calvo_staggered_contracts_model"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.2.2</span> <span>The Calvo staggered contracts model</span> </div> </a> <ul id="toc-The_Calvo_staggered_contracts_model-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Coordination_failure" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Coordination_failure"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.2.3</span> <span>Coordination failure</span> </div> </a> <ul id="toc-Coordination_failure-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Labor_market_failures:_Efficiency_wages" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Labor_market_failures:_Efficiency_wages"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.2.4</span> <span>Labor market failures: Efficiency wages</span> </div> </a> <ul id="toc-Labor_market_failures:_Efficiency_wages-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-1990s" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#1990s"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.3</span> <span>1990s</span> </div> </a> <ul id="toc-1990s-sublist" class="vector-toc-list"> <li id="toc-The_new_neoclassical_synthesis" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#The_new_neoclassical_synthesis"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.3.1</span> <span>The new neoclassical synthesis</span> </div> </a> <ul id="toc-The_new_neoclassical_synthesis-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Taylor_Rule" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Taylor_Rule"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.3.2</span> <span>Taylor Rule</span> </div> </a> <ul id="toc-Taylor_Rule-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-The_New_Keynesian_Phillips_curve" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#The_New_Keynesian_Phillips_curve"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.3.3</span> <span>The New Keynesian Phillips curve</span> </div> </a> <ul id="toc-The_New_Keynesian_Phillips_curve-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-The_science_of_monetary_policy" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#The_science_of_monetary_policy"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.3.4</span> <span>The science of monetary policy</span> </div> </a> <ul id="toc-The_science_of_monetary_policy-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-2000s" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#2000s"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.4</span> <span>2000s</span> </div> </a> <ul id="toc-2000s-sublist" class="vector-toc-list"> <li id="toc-The_introduction_of_imperfectly_competitive_labor_markets" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#The_introduction_of_imperfectly_competitive_labor_markets"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.4.1</span> <span>The introduction of imperfectly competitive labor markets</span> </div> </a> <ul id="toc-The_introduction_of_imperfectly_competitive_labor_markets-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-The_development_of_complex_DSGE_models" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#The_development_of_complex_DSGE_models"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.4.2</span> <span>The development of complex DSGE models</span> </div> </a> <ul id="toc-The_development_of_complex_DSGE_models-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Sticky_information" class="vector-toc-list-item vector-toc-level-3"> <a class="vector-toc-link" href="#Sticky_information"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.4.3</span> <span>Sticky information</span> </div> </a> <ul id="toc-Sticky_information-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-2010s" class="vector-toc-list-item vector-toc-level-2"> <a class="vector-toc-link" href="#2010s"> <div class="vector-toc-text"> <span class="vector-toc-numb">1.5</span> <span>2010s</span> </div> </a> <ul id="toc-2010s-sublist" class="vector-toc-list"> </ul> </li> </ul> </li> <li id="toc-Policy_implications" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Policy_implications"> <div class="vector-toc-text"> <span class="vector-toc-numb">2</span> <span>Policy implications</span> </div> </a> <ul id="toc-Policy_implications-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Relation_to_other_macroeconomic_schools" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Relation_to_other_macroeconomic_schools"> <div class="vector-toc-text"> <span class="vector-toc-numb">3</span> <span>Relation to other macroeconomic schools</span> </div> </a> <ul id="toc-Relation_to_other_macroeconomic_schools-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Major_New_Keynesian_economists" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Major_New_Keynesian_economists"> <div class="vector-toc-text"> <span class="vector-toc-numb">4</span> <span>Major New Keynesian economists</span> </div> </a> <ul id="toc-Major_New_Keynesian_economists-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-See_also" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#See_also"> <div class="vector-toc-text"> <span class="vector-toc-numb">5</span> <span>See also</span> </div> </a> <ul id="toc-See_also-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-References" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#References"> <div class="vector-toc-text"> <span class="vector-toc-numb">6</span> <span>References</span> </div> </a> <ul id="toc-References-sublist" class="vector-toc-list"> </ul> </li> <li id="toc-Further_reading" class="vector-toc-list-item vector-toc-level-1 vector-toc-list-item-expanded"> <a class="vector-toc-link" href="#Further_reading"> <div class="vector-toc-text"> <span class="vector-toc-numb">7</span> 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lang="cs" hreflang="cs" data-title="Novokeynesiánství" data-language-autonym="Čeština" data-language-local-name="Czech" class="interlanguage-link-target"><span>Čeština</span></a></li><li class="interlanguage-link interwiki-da mw-list-item"><a href="https://da.wikipedia.org/wiki/Nykeynesiansk_%C3%B8konomi" title="Nykeynesiansk økonomi – Danish" lang="da" hreflang="da" data-title="Nykeynesiansk økonomi" data-language-autonym="Dansk" data-language-local-name="Danish" class="interlanguage-link-target"><span>Dansk</span></a></li><li class="interlanguage-link interwiki-de mw-list-item"><a href="https://de.wikipedia.org/wiki/Neukeynesianismus" title="Neukeynesianismus – German" lang="de" hreflang="de" data-title="Neukeynesianismus" data-language-autonym="Deutsch" data-language-local-name="German" class="interlanguage-link-target"><span>Deutsch</span></a></li><li class="interlanguage-link interwiki-es mw-list-item"><a href="https://es.wikipedia.org/wiki/Nueva_econom%C3%ADa_keynesiana" title="Nueva economía keynesiana – Spanish" lang="es" hreflang="es" data-title="Nueva economía keynesiana" data-language-autonym="Español" data-language-local-name="Spanish" class="interlanguage-link-target"><span>Español</span></a></li><li class="interlanguage-link interwiki-eu mw-list-item"><a href="https://eu.wikipedia.org/wiki/Keynesiar_Ekonomia_Berria" title="Keynesiar Ekonomia Berria – Basque" lang="eu" hreflang="eu" data-title="Keynesiar Ekonomia Berria" data-language-autonym="Euskara" data-language-local-name="Basque" class="interlanguage-link-target"><span>Euskara</span></a></li><li class="interlanguage-link interwiki-fa mw-list-item"><a href="https://fa.wikipedia.org/wiki/%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF_%DA%A9%DB%8C%D9%86%D8%B2%DB%8C_%D9%86%D9%88" title="اقتصاد کینزی نو – Persian" lang="fa" hreflang="fa" data-title="اقتصاد کینزی نو" data-language-autonym="فارسی" data-language-local-name="Persian" class="interlanguage-link-target"><span>فارسی</span></a></li><li class="interlanguage-link interwiki-fr mw-list-item"><a href="https://fr.wikipedia.org/wiki/Nouvelle_%C3%A9conomie_keyn%C3%A9sienne" title="Nouvelle économie keynésienne – French" lang="fr" hreflang="fr" data-title="Nouvelle économie keynésienne" data-language-autonym="Français" data-language-local-name="French" class="interlanguage-link-target"><span>Français</span></a></li><li class="interlanguage-link interwiki-ko mw-list-item"><a href="https://ko.wikipedia.org/wiki/%EC%83%88%EC%BC%80%EC%9D%B8%EC%8A%A4%ED%95%99%ED%8C%8C" title="새케인스학파 – Korean" lang="ko" hreflang="ko" data-title="새케인스학파" data-language-autonym="한국어" data-language-local-name="Korean" class="interlanguage-link-target"><span>한국어</span></a></li><li class="interlanguage-link interwiki-id mw-list-item"><a href="https://id.wikipedia.org/wiki/Ekonomi_Keynesian_Baru" title="Ekonomi Keynesian Baru – Indonesian" lang="id" hreflang="id" data-title="Ekonomi Keynesian Baru" data-language-autonym="Bahasa Indonesia" data-language-local-name="Indonesian" class="interlanguage-link-target"><span>Bahasa Indonesia</span></a></li><li class="interlanguage-link interwiki-it mw-list-item"><a href="https://it.wikipedia.org/wiki/Nuova_macroeconomia_keynesiana" title="Nuova macroeconomia keynesiana – Italian" lang="it" hreflang="it" data-title="Nuova macroeconomia keynesiana" data-language-autonym="Italiano" data-language-local-name="Italian" class="interlanguage-link-target"><span>Italiano</span></a></li><li class="interlanguage-link interwiki-lt mw-list-item"><a href="https://lt.wikipedia.org/wiki/Diskretin%C4%97_ekonomin%C4%97_politika" title="Diskretinė ekonominė politika – Lithuanian" lang="lt" hreflang="lt" data-title="Diskretinė ekonominė politika" data-language-autonym="Lietuvių" data-language-local-name="Lithuanian" class="interlanguage-link-target"><span>Lietuvių</span></a></li><li class="interlanguage-link interwiki-nl mw-list-item"><a href="https://nl.wikipedia.org/wiki/Nieuwkeynesiaanse_economie" title="Nieuwkeynesiaanse economie – Dutch" lang="nl" hreflang="nl" data-title="Nieuwkeynesiaanse economie" data-language-autonym="Nederlands" data-language-local-name="Dutch" class="interlanguage-link-target"><span>Nederlands</span></a></li><li class="interlanguage-link interwiki-ja mw-list-item"><a href="https://ja.wikipedia.org/wiki/%E3%83%8B%E3%83%A5%E3%83%BC%E3%83%BB%E3%82%B1%E3%82%A4%E3%83%B3%E3%82%B8%E3%82%A2%E3%83%B3" title="ニュー・ケインジアン – Japanese" lang="ja" hreflang="ja" data-title="ニュー・ケインジアン" data-language-autonym="日本語" data-language-local-name="Japanese" class="interlanguage-link-target"><span>日本語</span></a></li><li class="interlanguage-link interwiki-no mw-list-item"><a href="https://no.wikipedia.org/wiki/Nykeynesiansk_%C3%B8konomi" title="Nykeynesiansk økonomi – Norwegian Bokmål" lang="nb" hreflang="nb" data-title="Nykeynesiansk økonomi" data-language-autonym="Norsk bokmål" data-language-local-name="Norwegian Bokmål" class="interlanguage-link-target"><span>Norsk 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hreflang="ru" data-title="Новое кейнсианство" data-language-autonym="Русский" data-language-local-name="Russian" class="interlanguage-link-target"><span>Русский</span></a></li><li class="interlanguage-link interwiki-sr mw-list-item"><a href="https://sr.wikipedia.org/wiki/%D0%9D%D0%BE%D0%B2%D0%B8_%D0%BA%D0%B5%D1%98%D0%BD%D0%B7%D0%B8%D1%98%D0%B0%D0%BD%D0%B8%D0%B7%D0%B0%D0%BC" title="Нови кејнзијанизам – Serbian" lang="sr" hreflang="sr" data-title="Нови кејнзијанизам" data-language-autonym="Српски / srpski" data-language-local-name="Serbian" class="interlanguage-link-target"><span>Српски / srpski</span></a></li><li class="interlanguage-link interwiki-sh mw-list-item"><a href="https://sh.wikipedia.org/wiki/Novi_kejnzijanizam" title="Novi kejnzijanizam – Serbo-Croatian" lang="sh" hreflang="sh" data-title="Novi kejnzijanizam" data-language-autonym="Srpskohrvatski / српскохрватски" data-language-local-name="Serbo-Croatian" class="interlanguage-link-target"><span>Srpskohrvatski / српскохрватски</span></a></li><li class="interlanguage-link interwiki-sv mw-list-item"><a href="https://sv.wikipedia.org/wiki/Nykeynesianism" title="Nykeynesianism – Swedish" lang="sv" hreflang="sv" data-title="Nykeynesianism" data-language-autonym="Svenska" data-language-local-name="Swedish" class="interlanguage-link-target"><span>Svenska</span></a></li><li class="interlanguage-link interwiki-uk mw-list-item"><a href="https://uk.wikipedia.org/wiki/%D0%9D%D0%BE%D0%B2%D0%B5_%D0%BA%D0%B5%D0%B9%D0%BD%D1%81%D1%96%D0%B0%D0%BD%D1%81%D1%82%D0%B2%D0%BE" title="Нове кейнсіанство – Ukrainian" lang="uk" hreflang="uk" data-title="Нове кейнсіанство" data-language-autonym="Українська" data-language-local-name="Ukrainian" class="interlanguage-link-target"><span>Українська</span></a></li><li class="interlanguage-link interwiki-vi mw-list-item"><a href="https://vi.wikipedia.org/wiki/Kinh_t%E1%BA%BF_h%E1%BB%8Dc_Keynes_m%E1%BB%9Bi" title="Kinh tế học Keynes mới – Vietnamese" lang="vi" hreflang="vi" data-title="Kinh tế học Keynes mới" data-language-autonym="Tiếng Việt" data-language-local-name="Vietnamese" class="interlanguage-link-target"><span>Tiếng Việt</span></a></li><li class="interlanguage-link interwiki-zh mw-list-item"><a href="https://zh.wikipedia.org/wiki/%E6%96%B0%E5%85%B4%E5%87%AF%E6%81%A9%E6%96%AF%E5%AD%A6%E6%B4%BE" title="新兴凯恩斯学派 – Chinese" lang="zh" hreflang="zh" data-title="新兴凯恩斯学派" data-language-autonym="中文" data-language-local-name="Chinese" class="interlanguage-link-target"><span>中文</span></a></li> </ul> <div class="after-portlet after-portlet-lang"><span class="wb-langlinks-edit wb-langlinks-link"><a href="https://www.wikidata.org/wiki/Special:EntityPage/Q936174#sitelinks-wikipedia" title="Edit interlanguage links" class="wbc-editpage">Edit links</a></span></div> </div> </div> </div> </header> <div class="vector-page-toolbar"> <div class="vector-page-toolbar-container"> <div id="left-navigation"> <nav aria-label="Namespaces"> <div id="p-associated-pages" 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.sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-list-title,html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle{background:transparent!important}html.skin-theme-clientpref-os .mw-parser-output .sidebar:not(.notheme) .sidebar-title-with-pretitle a{color:var(--color-progressive)!important}}@media print{body.ns-0 .mw-parser-output .sidebar{display:none!important}}</style><table class="sidebar sidebar-collapse nomobile nowraplinks"><tbody><tr><td class="sidebar-pretitle">Part of <a href="/wiki/Category:Macroeconomics" title="Category:Macroeconomics">a series</a> on</td></tr><tr><th class="sidebar-title-with-pretitle"><a href="/wiki/Macroeconomics" title="Macroeconomics">Macroeconomics</a></th></tr><tr><td class="sidebar-image" style="padding-top:0.6em;"><span class="notpageimage" typeof="mw:File"><a href="/wiki/File:Ec_8_(26088200676)_(cropped).jpg" class="mw-file-description"><img alt="Federal Reserve" src="//upload.wikimedia.org/wikipedia/commons/thumb/8/8f/Ec_8_%2826088200676%29_%28cropped%29.jpg/220px-Ec_8_%2826088200676%29_%28cropped%29.jpg" decoding="async" width="220" height="150" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/8/8f/Ec_8_%2826088200676%29_%28cropped%29.jpg/330px-Ec_8_%2826088200676%29_%28cropped%29.jpg 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/8/8f/Ec_8_%2826088200676%29_%28cropped%29.jpg/440px-Ec_8_%2826088200676%29_%28cropped%29.jpg 2x" data-file-width="2400" data-file-height="1633" /></a></span></td></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">Basic concepts</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Aggregate_demand" title="Aggregate demand">Aggregate demand</a></li> <li><a href="/wiki/Aggregate_supply" title="Aggregate supply">Aggregate supply</a></li> <li><a href="/wiki/Business_cycle" title="Business cycle">Business cycle</a></li> <li><a href="/wiki/Compound_annual_growth_rate" title="Compound annual growth rate">CAGR</a></li> <li><a href="/wiki/Deflation" title="Deflation">Deflation</a></li> <li><a href="/wiki/Demand_shock" title="Demand shock">Demand shock</a></li> <li><a href="/wiki/Disinflation" title="Disinflation">Disinflation</a></li> <li><a href="/wiki/Effective_demand" title="Effective demand">Effective demand</a></li> <li>Expectations <ul><li><a href="/wiki/Adaptive_expectations" title="Adaptive expectations">Adaptive</a></li> <li><a href="/wiki/Rational_expectations" title="Rational expectations">Rational</a></li></ul></li> <li><a href="/wiki/Financial_crisis" title="Financial crisis">Financial crisis</a></li> <li><a href="/wiki/Economic_growth" title="Economic growth">Growth</a></li> <li><a href="/wiki/Inflation" title="Inflation">Inflation</a> <ul><li><a href="/wiki/Demand-pull_inflation" title="Demand-pull inflation">Demand-pull</a></li> <li><a href="/wiki/Cost-push_inflation" title="Cost-push inflation">Cost-push</a></li></ul></li> <li><a href="/wiki/Interest_rate" title="Interest rate">Interest rate</a></li> <li><a href="/wiki/Investment_(macroeconomics)" title="Investment (macroeconomics)">Investment</a></li> <li><a href="/wiki/Liquidity_trap" title="Liquidity trap">Liquidity trap</a></li> <li><a href="/wiki/Measures_of_national_income_and_output" title="Measures of national income and output">Measures of national income and output</a> <ul><li><a href="/wiki/Gross_domestic_product" title="Gross domestic product">GDP</a></li> <li><a href="/wiki/Gross_national_income" title="Gross national income">GNI</a></li> <li><a href="/wiki/Net_national_income" title="Net national income">NNI</a></li></ul></li> <li><a href="/wiki/Microfoundations" title="Microfoundations">Microfoundations</a></li> <li><a href="/wiki/Money" title="Money">Money</a> <ul><li><a href="/wiki/Endogenous_money" title="Endogenous money">Endogenous</a></li></ul></li> <li><a href="/wiki/Money_creation" title="Money creation">Money creation</a></li> <li><a href="/wiki/Demand_for_money" title="Demand for money">Demand for money</a> <ul><li><a href="/wiki/Liquidity_preference" title="Liquidity preference">Liquidity preference</a></li></ul></li> <li><a href="/wiki/Money_supply" title="Money supply">Money supply</a></li> <li><a href="/wiki/National_accounts" title="National accounts">National accounts</a> <ul><li><a href="/wiki/System_of_National_Accounts" title="System of National Accounts">SNA</a></li></ul></li> <li><a href="/wiki/Nominal_rigidity" title="Nominal rigidity">Nominal rigidity</a></li> <li><a href="/wiki/Price_level" title="Price level">Price level</a></li> <li><a href="/wiki/Recession" title="Recession">Recession</a></li> <li><a href="/wiki/Shrinkflation" title="Shrinkflation">Shrinkflation</a></li> <li><a href="/wiki/Stagflation" title="Stagflation">Stagflation</a></li> <li><a href="/wiki/Supply_shock" title="Supply shock">Supply shock</a></li> <li><a href="/wiki/National_saving" title="National saving">Saving</a></li> <li><a href="/wiki/Unemployment" title="Unemployment">Unemployment</a></li></ul> </div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">Policies</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Fiscal_policy" title="Fiscal policy">Fiscal</a></li> <li><a href="/wiki/Monetary_policy" title="Monetary policy">Monetary</a></li> <li><a href="/wiki/Commercial_policy" title="Commercial policy">Commercial</a></li> <li><a href="/wiki/Central_bank" title="Central bank">Central bank</a></li> <li><a href="/wiki/Universal_basic_income" title="Universal basic income">Universal basic income</a></li></ul> </div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">Models</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/IS%E2%80%93LM_model" title="IS–LM model">IS–LM</a></li> <li><a href="/wiki/AD%E2%80%93AS_model" title="AD–AS model">AD–AS</a></li> <li><a href="/wiki/Keynesian_cross" title="Keynesian cross">Keynesian cross</a></li> <li><a href="/wiki/Multiplier_(economics)" title="Multiplier (economics)">Multiplier</a></li> <li><a href="/wiki/Accelerator_effect" title="Accelerator effect">Accelerator</a></li> <li><a href="/wiki/Phillips_curve" title="Phillips curve">Phillips curve</a></li> <li><a href="/wiki/Arrow%E2%80%93Debreu_model" title="Arrow–Debreu model">Arrow–Debreu</a></li> <li><a href="/wiki/Harrod%E2%80%93Domar_model" title="Harrod–Domar model">Harrod–Domar</a>Нмиф</li> <li><a href="/wiki/Solow%E2%80%93Swan_model" title="Solow–Swan model">Solow–Swan</a></li> <li><a href="/wiki/Ramsey%E2%80%93Cass%E2%80%93Koopmans_model" title="Ramsey–Cass–Koopmans model">Ramsey–Cass–Koopmans</a></li> <li><a href="/wiki/Overlapping_generations_model" title="Overlapping generations model">Overlapping generations</a></li> <li><a href="/wiki/General_equilibrium_theory" title="General equilibrium theory">General equilibrium</a> <ul><li><a href="/wiki/Dynamic_stochastic_general_equilibrium" title="Dynamic stochastic general equilibrium">DSGE</a></li></ul></li> <li><a href="/wiki/Endogenous_growth_theory" title="Endogenous growth theory">Endogenous growth</a></li> <li><a href="/wiki/Matching_theory_(economics)" class="mw-redirect" title="Matching theory (economics)">Matching theory</a></li> <li><a href="/wiki/Mundell%E2%80%93Fleming_model" title="Mundell–Fleming model">Mundell–Fleming</a></li> <li><a href="/wiki/Overshooting_model" title="Overshooting model">Overshooting</a></li> <li><a href="/wiki/NAIRU" title="NAIRU">NAIRU</a></li></ul> </div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">Related fields</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Econometrics" title="Econometrics">Econometrics</a></li> <li><a href="/wiki/Economic_statistics" title="Economic statistics">Economic statistics</a></li> <li><a href="/wiki/Monetary_economics" title="Monetary economics">Monetary economics</a></li> <li><a href="/wiki/Development_economics" title="Development economics">Development economics</a></li> <li><a href="/wiki/International_economics" title="International economics">International economics</a></li></ul> </div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)"><a href="/wiki/History_of_macroeconomic_thought" title="History of macroeconomic thought">Schools</a></div><div class="sidebar-list-content mw-collapsible-content hlist"><i>Mainstream</i> <ul><li><a href="/wiki/Keynesian_economics" title="Keynesian economics">Keynesian</a> <ul><li><a href="/wiki/Neo-Keynesian_economics" class="mw-redirect" title="Neo-Keynesian economics">Neo-</a></li> <li><a class="mw-selflink selflink">New</a></li></ul></li> <li><a href="/wiki/Monetarism" title="Monetarism">Monetarism</a></li> <li><a href="/wiki/New_classical_macroeconomics" title="New classical macroeconomics">New classical</a> <ul><li><a href="/wiki/Real_business-cycle_theory" title="Real business-cycle theory">Real business-cycle theory</a></li></ul></li> <li><a href="/wiki/Stockholm_school_(economics)" class="mw-redirect" title="Stockholm school (economics)">Stockholm</a></li> <li><a href="/wiki/Supply-side_economics" title="Supply-side economics">Supply-side</a></li> <li><a href="/wiki/New_neoclassical_synthesis" title="New neoclassical synthesis">New neoclassical synthesis</a></li> <li><a href="/wiki/Saltwater_and_freshwater_economics" title="Saltwater and freshwater economics">Saltwater and freshwater</a></li></ul> <p><i>Heterodox</i> </p> <ul><li><a href="/wiki/Austrian_School" class="mw-redirect" title="Austrian School">Austrian</a></li> <li><a href="/wiki/Chartalism" title="Chartalism">Chartalism</a> <ul><li><a href="/wiki/Modern_monetary_theory" title="Modern monetary theory">Modern monetary theory</a></li></ul></li> <li><a href="/wiki/Ecological_economics" title="Ecological economics">Ecological</a></li> <li><a href="/wiki/Post-Keynesian_economics" title="Post-Keynesian economics">Post-Keynesian</a> <ul><li><a href="/wiki/Monetary_circuit_theory" title="Monetary circuit theory">Circuitism</a></li></ul></li> <li><a href="/wiki/Disequilibrium_macroeconomics" title="Disequilibrium macroeconomics">Disequilibrium</a></li> <li><a href="/wiki/Marxian_economics" title="Marxian economics">Marxian</a></li> <li><a href="/wiki/Market_monetarism" title="Market monetarism">Market monetarism</a></li></ul> </div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)"><a href="/wiki/Category:Macroeconomists" title="Category:Macroeconomists">People</a></div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Fran%C3%A7ois_Quesnay" title="François Quesnay">François Quesnay</a></li> <li><a href="/wiki/Adam_Smith" title="Adam Smith">Adam Smith</a></li> <li><a href="/wiki/Thomas_Robert_Malthus" title="Thomas Robert Malthus">Thomas Robert Malthus</a></li> <li><a href="/wiki/Karl_Marx" title="Karl Marx">Karl Marx</a></li> <li><a href="/wiki/L%C3%A9on_Walras" title="Léon Walras">Léon Walras</a></li> <li><a href="/wiki/Knut_Wicksell" title="Knut Wicksell">Knut Wicksell</a></li> <li><a href="/wiki/Irving_Fisher" title="Irving Fisher">Irving Fisher</a></li> <li><a href="/wiki/Wesley_Clair_Mitchell" title="Wesley Clair Mitchell">Wesley Clair Mitchell</a></li> <li><a href="/wiki/John_Maynard_Keynes" title="John Maynard Keynes">John Maynard Keynes</a></li> <li><a href="/wiki/Alvin_Hansen" title="Alvin Hansen">Alvin Hansen</a></li> <li><a href="/wiki/Micha%C5%82_Kalecki" title="Michał Kalecki">Michał Kalecki</a></li> <li><a href="/wiki/Gunnar_Myrdal" title="Gunnar Myrdal">Gunnar Myrdal</a></li> <li><a href="/wiki/Simon_Kuznets" title="Simon Kuznets">Simon Kuznets</a></li> <li><a href="/wiki/Joan_Robinson" title="Joan Robinson">Joan Robinson</a></li> <li><a href="/wiki/Friedrich_Hayek" title="Friedrich Hayek">Friedrich Hayek</a></li> <li><a href="/wiki/John_Hicks" title="John Hicks">John Hicks</a></li> <li><a href="/wiki/Richard_Stone" title="Richard Stone">Richard Stone</a></li> <li><a href="/wiki/Hyman_Minsky" title="Hyman Minsky">Hyman Minsky</a></li> <li><a href="/wiki/Milton_Friedman" title="Milton Friedman">Milton Friedman</a></li> <li><a href="/wiki/Paul_Samuelson" title="Paul Samuelson">Paul Samuelson</a></li> <li><a href="/wiki/Lawrence_Klein" title="Lawrence Klein">Lawrence Klein</a></li> <li><a href="/wiki/Edmund_Phelps" title="Edmund Phelps">Edmund Phelps</a></li> <li><a href="/wiki/Robert_Lucas_Jr." title="Robert Lucas Jr.">Robert Lucas Jr.</a></li> <li><a href="/wiki/Edward_C._Prescott" title="Edward C. Prescott">Edward C. Prescott</a></li> <li><a href="/wiki/Peter_Diamond" title="Peter Diamond">Peter Diamond</a></li> <li><a href="/wiki/William_Nordhaus" title="William Nordhaus">William Nordhaus</a></li> <li><a href="/wiki/Joseph_Stiglitz" title="Joseph Stiglitz">Joseph Stiglitz</a></li> <li><a href="/wiki/Thomas_J._Sargent" title="Thomas J. Sargent">Thomas J. Sargent</a></li> <li><a href="/wiki/Paul_Krugman" title="Paul Krugman">Paul Krugman</a></li> <li><a href="/wiki/Greg_Mankiw" title="Greg Mankiw">N. Gregory Mankiw</a></li></ul> </div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:transparent;border-top:1px solid #aaa;text-align:center;;color: var(--color-base)">See also</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Macroeconomic_model" title="Macroeconomic model">Macroeconomic model</a></li> <li><a href="/wiki/List_of_important_publications_in_economics#Macroeconomics" title="List of important publications in economics">Publications in macroeconomics</a></li> <li><a href="/wiki/Economics" title="Economics">Economics</a> <ul><li><a href="/wiki/Applied_economics" title="Applied economics">Applied</a></li></ul></li> <li><a href="/wiki/Microeconomics" title="Microeconomics">Microeconomics</a></li> <li><a href="/wiki/Political_economy" title="Political economy">Political economy</a></li> <li><a href="/wiki/Mathematical_economics" title="Mathematical economics">Mathematical economics</a></li></ul> </div></div></td> </tr><tr><td class="sidebar-below plainlist"> <ul><li><span class="nowrap"><span class="noviewer" typeof="mw:File"><span><img alt="icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/5/55/Bills_and_coins.svg/16px-Bills_and_coins.svg.png" decoding="async" width="16" height="8" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/5/55/Bills_and_coins.svg/24px-Bills_and_coins.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/5/55/Bills_and_coins.svg/32px-Bills_and_coins.svg.png 2x" data-file-width="960" data-file-height="465" /></span></span> </span><a href="/wiki/Portal:Money" title="Portal:Money">Money portal</a></li> <li><span class="nowrap"><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Emblem-money.svg" class="mw-file-description"><img alt="icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/16px-Emblem-money.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/24px-Emblem-money.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/32px-Emblem-money.svg.png 2x" data-file-width="48" data-file-height="48" /></a></span> </span><a href="/wiki/Portal:Business" title="Portal:Business">Business portal</a></li></ul></td></tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1239400231">.mw-parser-output .navbar{display:inline;font-size:88%;font-weight:normal}.mw-parser-output .navbar-collapse{float:left;text-align:left}.mw-parser-output .navbar-boxtext{word-spacing:0}.mw-parser-output .navbar ul{display:inline-block;white-space:nowrap;line-height:inherit}.mw-parser-output .navbar-brackets::before{margin-right:-0.125em;content:"[ "}.mw-parser-output .navbar-brackets::after{margin-left:-0.125em;content:" ]"}.mw-parser-output .navbar li{word-spacing:-0.125em}.mw-parser-output .navbar a>span,.mw-parser-output .navbar a>abbr{text-decoration:inherit}.mw-parser-output .navbar-mini abbr{font-variant:small-caps;border-bottom:none;text-decoration:none;cursor:inherit}.mw-parser-output .navbar-ct-full{font-size:114%;margin:0 7em}.mw-parser-output .navbar-ct-mini{font-size:114%;margin:0 4em}html.skin-theme-clientpref-night .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}@media(prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .navbar li a abbr{color:var(--color-base)!important}}@media print{.mw-parser-output .navbar{display:none!important}}</style><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Macroeconomics_sidebar" title="Template:Macroeconomics sidebar"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Macroeconomics_sidebar" title="Template talk:Macroeconomics sidebar"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Macroeconomics_sidebar" title="Special:EditPage/Template:Macroeconomics sidebar"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1126788409"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1246091330"><table class="sidebar sidebar-collapse nomobile nowraplinks"><tbody><tr><td class="sidebar-pretitle">Part of <a href="/wiki/Category:Capitalism" title="Category:Capitalism">a series</a> on</td></tr><tr><th class="sidebar-title-with-pretitle" style="padding:0.2em;"><a href="/wiki/Capitalism" title="Capitalism">Capitalism</a></th></tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:#efefef;text-align:left;;color: var(--color-base)">Concepts</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Austerity" title="Austerity">Austerity</a></li> <li><a href="/wiki/Business" title="Business">Business</a></li> <li><a href="/wiki/Business_cycle" title="Business cycle">Business cycle</a></li> <li><a href="/wiki/Businessperson" title="Businessperson">Businessperson</a></li> <li><a href="/wiki/Capital_(economics)" title="Capital (economics)">Capital</a></li> <li><a href="/wiki/Capital_accumulation" title="Capital accumulation">Capital accumulation</a></li> <li><a href="/wiki/Capital_market" title="Capital market">Capital markets</a></li> <li><a href="/wiki/Company" title="Company">Company</a></li> <li><a href="/wiki/Corporation" title="Corporation">Corporation</a></li> <li><a href="/wiki/Competition_(economics)" title="Competition (economics)">Competitive markets</a></li> <li><a href="/wiki/Economic_interventionism" class="mw-redirect" title="Economic interventionism">Economic interventionism</a></li> <li><a href="/wiki/Economic_liberalism" title="Economic liberalism">Economic liberalism</a></li> <li><a href="/wiki/Economic_surplus" title="Economic surplus">Economic surplus</a></li> <li><a href="/wiki/Entrepreneurship" title="Entrepreneurship">Entrepreneurship</a></li> <li><a href="/wiki/Fictitious_capital" title="Fictitious capital">Fictitious capital</a></li> <li><a href="/wiki/Financial_market" title="Financial market">Financial market</a></li> <li><a href="/wiki/Free_price_system" title="Free price system">Free price system</a></li> <li><a href="/wiki/Free_market" title="Free market">Free market</a></li> <li><a href="/wiki/Goods_and_services" title="Goods and services">Goods and services</a></li> <li><a href="/wiki/Investor" title="Investor">Investor</a></li> <li><a href="/wiki/Invisible_hand" title="Invisible hand">Invisible hand</a></li> <li><a href="/wiki/Visible_hand_(economics)" title="Visible hand (economics)">Visible hand</a></li> <li><a href="/wiki/Liberalization" title="Liberalization">Liberalization</a></li> <li><a href="/wiki/Marginalism" title="Marginalism">Marginalism</a></li> <li><a href="/wiki/Money" title="Money">Money</a></li> <li><a href="/wiki/Private_property" title="Private property">Private property</a></li> <li><a href="/wiki/Privatization" title="Privatization">Privatization</a></li> <li><a href="/wiki/Profit_(economics)" title="Profit (economics)">Profit</a></li> <li><a href="/wiki/Rent_seeking" class="mw-redirect" title="Rent seeking">Rent seeking</a></li> <li><a href="/wiki/Supply_and_demand" title="Supply and demand">Supply and demand</a></li> <li><a href="/wiki/Surplus_value" title="Surplus value">Surplus value</a></li> <li><a href="/wiki/Value_(economics)" title="Value (economics)">Value</a></li> <li><a href="/wiki/Wage_labour" title="Wage labour">Wage labour</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:#efefef;text-align:left;;color: var(--color-base)">Economic systems</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Anglo-Saxon_capitalism" class="mw-redirect" title="Anglo-Saxon capitalism">Anglo-Saxon</a></li> <li><a href="/wiki/Authoritarian_capitalism" title="Authoritarian capitalism">Authoritarian</a></li> <li><a href="/wiki/Corporate_capitalism" title="Corporate capitalism">Corporate</a></li> <li><a href="/wiki/Dirigisme" title="Dirigisme">Dirigist</a></li> <li><a href="/wiki/Free_market#General_principles" title="Free market">Free-market</a></li> <li><a href="/wiki/Humanistic_capitalism" title="Humanistic capitalism">Humanistic</a></li> <li><i><a href="/wiki/Laissez-faire_capitalism" class="mw-redirect" title="Laissez-faire capitalism">Laissez-faire</a></i></li> <li><a href="/wiki/Liberal_capitalism" class="mw-redirect" title="Liberal capitalism">Liberal</a></li> <li><a href="/wiki/Libertarian_capitalism" class="mw-redirect" title="Libertarian capitalism">Libertarian</a></li> <li><a href="/wiki/Market_capitalism" class="mw-redirect" title="Market capitalism">Market</a></li> <li><a href="/wiki/Mercantilism" title="Mercantilism">Mercantilist</a></li> <li><a href="/wiki/Mixed_capitalism" class="mw-redirect" title="Mixed capitalism">Mixed</a></li> <li><a href="/wiki/State_monopoly_capitalism" title="State monopoly capitalism">Monopoly</a></li> <li><a href="/wiki/National_capitalism" class="mw-redirect" title="National capitalism">National</a></li> <li><a href="/wiki/Neoliberalism" title="Neoliberalism">Neoliberal</a></li> <li><a href="/wiki/Nordic_capitalism" class="mw-redirect" title="Nordic capitalism">Nordic</a></li> <li><a href="/wiki/Anarcho-capitalism" title="Anarcho-capitalism">Private</a></li> <li><a href="/wiki/Raw_capitalism" class="mw-redirect" title="Raw capitalism">Raw</a></li> <li><a href="/wiki/Regulated_market" title="Regulated market">Regulated market</a></li> <li><a href="/wiki/Regulatory_capitalism" title="Regulatory capitalism">Regulatory</a></li> <li><a href="/wiki/Rhine_capitalism" class="mw-redirect" title="Rhine capitalism">Rhine</a></li> <li><a href="/wiki/Social_market_economy" title="Social market economy">Social</a></li> <li><a href="/wiki/State_capitalism" title="State capitalism">State</a></li> <li><a href="/wiki/State-sponsored_capitalism" class="mw-redirect" title="State-sponsored capitalism">State-sponsored</a></li> <li><a href="/wiki/Welfare_capitalism" title="Welfare capitalism">Welfare</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:#efefef;text-align:left;;color: var(--color-base)">Economic theories</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/American_School_(economics)" title="American School (economics)">American</a></li> <li><a href="/wiki/Austrian_School" class="mw-redirect" title="Austrian School">Austrian</a></li> <li><a href="/wiki/Chartalism" title="Chartalism">Chartalism</a> <ul><li><a href="/wiki/Modern_Monetary_Theory" class="mw-redirect" title="Modern Monetary Theory">MMT</a></li></ul></li> <li><a href="/wiki/Chicago_school_of_economics" title="Chicago school of economics">Chicago</a></li> <li><a href="/wiki/Classical_economics" title="Classical economics">Classical</a></li> <li><a href="/wiki/Institutional_economics" title="Institutional economics">Institutional</a></li> <li><a href="/wiki/Keynesian_economics" title="Keynesian economics">Keynesian</a> <ul><li><a href="/wiki/Neo-Keynesian_economics" class="mw-redirect" title="Neo-Keynesian economics">Neo-</a></li> <li><a class="mw-selflink selflink">New</a></li> <li><a href="/wiki/Post-Keynesian_economics" title="Post-Keynesian economics">Post-</a></li></ul></li> <li><a href="/wiki/Market_monetarism" title="Market monetarism">Market monetarism</a></li> <li><a href="/wiki/Critique_of_political_economy" title="Critique of political economy">Critique of political economy</a></li> <li><a href="/wiki/Critique_of_work" title="Critique of work">Critique of work</a></li> <li><a href="/wiki/Marxian_economics" title="Marxian economics">Marxist</a></li> <li><a href="/wiki/Monetarism" title="Monetarism">Monetarist</a></li> <li><a href="/wiki/Neoclassical_economics" title="Neoclassical economics">Neoclassical</a></li> <li><a href="/wiki/New_institutional_economics" title="New institutional economics">New institutional</a></li> <li><a href="/wiki/Supply-side_economics" title="Supply-side economics">Supply-side</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:#efefef;text-align:left;;color: var(--color-base)">Origins</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Age_of_Enlightenment" title="Age of Enlightenment">Age of Enlightenment</a></li> <li><a href="/wiki/Capitalism_and_Islam" title="Capitalism and Islam">Capitalism and Islam</a></li> <li><a href="/wiki/Commercial_Revolution" class="mw-redirect" title="Commercial Revolution">Commercial Revolution</a></li> <li><a href="/wiki/Feudalism" title="Feudalism">Feudalism</a></li> <li><a href="/wiki/Industrial_Revolution" title="Industrial Revolution">Industrial Revolution</a></li> <li><a href="/wiki/Mercantilism" title="Mercantilism">Mercantilism</a></li> <li><a href="/wiki/Primitive_accumulation_of_capital" title="Primitive accumulation of capital">Primitive accumulation</a></li> <li><a href="/wiki/Physiocracy" title="Physiocracy">Physiocracy</a></li> <li><a href="/wiki/Simple_commodity_production" title="Simple commodity production">Simple commodity production</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div class="sidebar-list-title" style="background:#efefef;text-align:left;;color: var(--color-base)">Development</div><div class="sidebar-list-content mw-collapsible-content hlist"> <ul><li><a href="/wiki/Advanced_capitalism" title="Advanced capitalism">Advanced</a></li> <li><a href="/wiki/Consumer_capitalism" title="Consumer capitalism">Consumer</a></li> <li><a href="/wiki/Community_capitalism" title="Community capitalism">Community</a></li> <li><a href="/wiki/Corporate_capitalism" title="Corporate capitalism">Corporate</a></li> <li><a href="/wiki/Crony_capitalism" title="Crony capitalism">Crony</a></li> <li><a href="/wiki/Finance_capitalism" title="Finance capitalism">Finance</a></li> <li><a href="/wiki/Global_capitalism" class="mw-redirect" title="Global capitalism">Global</a></li> <li><a href="/wiki/Authoritarian_capitalism" title="Authoritarian capitalism">Illiberal</a></li> <li><a href="/wiki/Late_capitalism" title="Late capitalism">Late</a></li> <li><a href="/wiki/Capitalist_mode_of_production_(Marxist_theory)" title="Capitalist mode of production (Marxist theory)">Marxist</a></li> <li><a href="/wiki/Merchant_capitalism" title="Merchant capitalism">Merchant</a></li> <li><a href="/wiki/Progressive_capitalism" title="Progressive capitalism">Progressive</a></li> <li><a href="/wiki/Rentier_capitalism" title="Rentier capitalism">Rentier</a></li> <li><a href="/wiki/State_monopoly_capitalism" title="State monopoly capitalism">State monopoly</a></li> <li><a href="/wiki/Technocapitalism" title="Technocapitalism">Technological</a></li></ul></div></div></td> </tr><tr><td class="sidebar-content"> <div class="sidebar-list mw-collapsible mw-collapsed"><div 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mw-collapsible-content hlist"> <ul><li><a href="/wiki/Anarcho-capitalism" title="Anarcho-capitalism">Anarcho</a></li> <li><a href="/wiki/Authoritarian_capitalism" title="Authoritarian capitalism">Authoritarian</a></li> <li><a href="/wiki/Classical_liberalism" title="Classical liberalism">Classical liberalism</a></li> <li><a href="/wiki/Democratic_capitalism" title="Democratic capitalism">Democratic</a></li> <li><a href="/wiki/Dirigisme" title="Dirigisme">Dirigisme</a></li> <li><a href="/wiki/Eco-capitalism" title="Eco-capitalism">Eco</a></li> <li><a href="/wiki/Humanistic_capitalism" title="Humanistic capitalism">Humanistic</a></li> <li><a href="/wiki/Inclusive_capitalism" title="Inclusive capitalism">Inclusive</a></li> <li><a href="/wiki/Liberal_capitalism" class="mw-redirect" title="Liberal capitalism">Liberal</a></li> <li><a href="/wiki/Liberalism" title="Liberalism">Liberalism</a></li> <li><a href="/wiki/Libertarian_capitalism" class="mw-redirect" title="Libertarian capitalism">Libertarian</a></li> <li><a href="/wiki/Neo-Capitalism" class="mw-redirect" title="Neo-Capitalism">Neo</a></li> <li><a href="/wiki/Neoliberalism" title="Neoliberalism">Neoliberalism</a></li> <li><a href="/wiki/Objectivism" title="Objectivism">Objectivism</a></li> <li><a href="/wiki/Ordoliberalism" title="Ordoliberalism">Ordoliberalism</a></li> <li><a href="/wiki/Privatism" title="Privatism">Privatism</a></li> <li><a href="/wiki/Right-libertarianism" title="Right-libertarianism">Right-libertarianism</a></li> <li><a href="/wiki/Third_Way" title="Third Way">Third Way</a></li></ul></div></div></td> </tr><tr><td class="sidebar-below plainlist"> <ul><li><span class="nowrap"><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Capitalismlogo.svg" class="mw-file-description"><img alt="icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/2/2f/Capitalismlogo.svg/16px-Capitalismlogo.svg.png" decoding="async" width="16" height="15" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/2/2f/Capitalismlogo.svg/24px-Capitalismlogo.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/2/2f/Capitalismlogo.svg/32px-Capitalismlogo.svg.png 2x" data-file-width="959" data-file-height="912" /></a></span> </span><a href="/wiki/Portal:Capitalism" title="Portal:Capitalism">Capitalism portal</a></li> <li><span class="nowrap"><span class="noviewer" typeof="mw:File"><a href="/wiki/File:Emblem-money.svg" class="mw-file-description"><img alt="icon" src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/16px-Emblem-money.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/24px-Emblem-money.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/f/f3/Emblem-money.svg/32px-Emblem-money.svg.png 2x" data-file-width="48" data-file-height="48" /></a></span> </span><a href="/wiki/Portal:Business" title="Portal:Business">Business portal</a></li></ul></td></tr><tr><td class="sidebar-navbar"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Capitalism_sidebar" title="Template:Capitalism sidebar"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Capitalism_sidebar" title="Template talk:Capitalism sidebar"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Capitalism_sidebar" title="Special:EditPage/Template:Capitalism sidebar"><abbr title="Edit this template">e</abbr></a></li></ul></div></td></tr></tbody></table> <p><b>New Keynesian economics</b> is a school of <a href="/wiki/Macroeconomics" title="Macroeconomics">macroeconomics</a> that strives to provide <a href="/wiki/Microfoundations" title="Microfoundations">microeconomic foundations</a> for <a href="/wiki/Keynesian_economics" title="Keynesian economics">Keynesian economics</a>. It developed partly as a response to criticisms of Keynesian macroeconomics by adherents of <a href="/wiki/New_classical_macroeconomics" title="New classical macroeconomics">new classical macroeconomics</a>. </p><p>Two main assumptions define the New Keynesian approach to macroeconomics. Like the New Classical approach, New Keynesian macroeconomic analysis usually assumes that households and firms have <a href="/wiki/Rational_expectations" title="Rational expectations">rational expectations</a>. However, the two schools differ in that New Keynesian analysis usually assumes a variety of <a href="/wiki/Market_failure" title="Market failure">market failures</a>. In particular, New Keynesians assume that there is <a href="/wiki/Imperfect_competition" title="Imperfect competition">imperfect competition</a><sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup> in price and wage setting to help explain why prices and wages can become "<a href="/wiki/Sticky_(economics)" class="mw-redirect" title="Sticky (economics)">sticky</a>", which means they do not adjust instantaneously to changes in economic conditions. </p><p>Wage and price stickiness, and the other present descriptions of market failures in New Keynesian <a href="/wiki/Model_(macroeconomics)" class="mw-redirect" title="Model (macroeconomics)">models</a>, imply that the economy may fail to attain <a href="/wiki/Full_employment" title="Full employment">full employment</a>. Therefore, New Keynesians argue that macroeconomic stabilization by the government (using <a href="/wiki/Fiscal_policy" title="Fiscal policy">fiscal policy</a>) and the <a href="/wiki/Central_bank" title="Central bank">central bank</a> (using <a href="/wiki/Monetary_policy" title="Monetary policy">monetary policy</a>) can lead to a more <a href="/wiki/Pareto_efficiency" title="Pareto efficiency">efficient</a> macroeconomic outcome than a <i><a href="/wiki/Laissez_faire" class="mw-redirect" title="Laissez faire">laissez faire</a></i> policy would. </p><p>New Keynesianism became part of the <a href="/wiki/New_neoclassical_synthesis" title="New neoclassical synthesis">new neoclassical synthesis</a> that incorporated parts of both it and <a href="/wiki/New_classical_macroeconomics" title="New classical macroeconomics">new classical macroeconomics</a>, and forms the theoretical basis of mainstream macroeconomics today.<sup id="cite_ref-columbia.edu_2-0" class="reference"><a href="#cite_note-columbia.edu-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-scholar.harvard.edu_3-0" class="reference"><a href="#cite_note-scholar.harvard.edu-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-richmondfed.org_4-0" class="reference"><a href="#cite_note-richmondfed.org-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-5" class="reference"><a href="#cite_note-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> </p> <meta property="mw:PageProp/toc" /> <div class="mw-heading mw-heading2"><h2 id="Development_of_New_Keynesian_economics">Development of New Keynesian economics</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=1" title="Edit section: Development of New Keynesian economics"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading3"><h3 id="1970s">1970s</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=2" title="Edit section: 1970s"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The first wave of New Keynesian economics developed in the late 1970s. The first model of <i>Sticky information</i> was developed by <a href="/wiki/Stanley_Fischer" title="Stanley Fischer">Stanley Fischer</a> in his 1977 article, <i>Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule</i>.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup> He adopted a "staggered" or "overlapping" contract model. Suppose that there are two unions in the economy, who take turns to choose wages. When it is a union's turn, it chooses the wages it will set for the next two periods. This contrasts with <a href="/wiki/John_B._Taylor" title="John B. Taylor">John B. Taylor</a>'s model where the nominal wage is constant over the contract life, as was subsequently developed in his two articles: one in 1979, "Staggered wage setting in a macro model",<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup> and one in 1980, "Aggregate Dynamics and Staggered Contracts".<sup id="cite_ref-8" class="reference"><a href="#cite_note-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup> Both Taylor and Fischer contracts share the feature that only the unions setting the wage in the current period are using the latest information: wages in half of the economy still reflect old information. The Taylor model had sticky nominal wages in addition to the sticky information: nominal wages had to be constant over the length of the contract (two periods). These early new Keynesian theories were based on the basic idea that, given fixed nominal wages, a monetary authority (central bank) can control the employment rate. Since wages are fixed at a nominal rate, the monetary authority can control the <a href="/wiki/Real_wage" class="mw-redirect" title="Real wage">real wage</a> (wage values adjusted for inflation) by changing the money supply and thus affect the employment rate.<sup id="cite_ref-9" class="reference"><a href="#cite_note-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="1980s">1980s</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=3" title="Edit section: 1980s"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading4"><h4 id="Menu_costs_and_imperfect_competition">Menu costs and imperfect competition</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=4" title="Edit section: Menu costs and imperfect competition"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In the 1980s the key concept of using menu costs in a framework of <a href="/wiki/Imperfect_competition" title="Imperfect competition">imperfect competition</a> to explain price stickiness was developed.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup> The concept of a lump-sum cost (menu cost) to changing the price was originally introduced by Sheshinski and Weiss (1977) in their paper looking at the effect of inflation on the frequency of price-changes.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup> The idea of applying it as a general theory of <a href="/wiki/Nominal_rigidity" title="Nominal rigidity">nominal price rigidity</a> was simultaneously put forward by several economists in 1985–86. <a href="/wiki/George_Akerlof" title="George Akerlof">George Akerlof</a> and <a href="/wiki/Janet_Yellen" title="Janet Yellen">Janet Yellen</a> put forward the idea that due to <a href="/wiki/Bounded_rationality" title="Bounded rationality">bounded rationality</a> firms will not want to change their price unless the benefit is more than a small amount.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup> This <a href="/wiki/Bounded_rationality" title="Bounded rationality">bounded rationality</a> leads to inertia in nominal prices and wages which can lead to output fluctuating at constant nominal prices and wages. <a href="/wiki/Gregory_Mankiw" class="mw-redirect" title="Gregory Mankiw">Gregory Mankiw</a> took the menu-cost idea and focused on the welfare effects of changes in output resulting from <a href="/wiki/Sticky_prices" class="mw-redirect" title="Sticky prices">sticky prices</a>.<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup> Michael Parkin also put forward the idea.<sup id="cite_ref-15" class="reference"><a href="#cite_note-15"><span class="cite-bracket">[</span>15<span class="cite-bracket">]</span></a></sup> Although the approach initially focused mainly on the rigidity of nominal prices, it was extended to wages and prices by <a href="/wiki/Olivier_Blanchard" title="Olivier Blanchard">Olivier Blanchard</a> and <a href="/wiki/Nobuhiro_Kiyotaki" title="Nobuhiro Kiyotaki">Nobuhiro Kiyotaki</a> in their influential article "Monopolistic Competition and the Effects of Aggregate Demand".<sup id="cite_ref-16" class="reference"><a href="#cite_note-16"><span class="cite-bracket">[</span>16<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Huw_Dixon" title="Huw Dixon">Huw Dixon</a> and Claus Hansen showed that even if menu costs applied to a small sector of the economy, this would influence the rest of the economy and lead to prices in the rest of the economy becoming less responsive to changes in demand.<sup id="cite_ref-17" class="reference"><a href="#cite_note-17"><span class="cite-bracket">[</span>17<span class="cite-bracket">]</span></a></sup> </p><p>While some studies suggested that menu costs are too small to have much of an aggregate impact, <a href="/wiki/Laurence_M._Ball" title="Laurence M. Ball">Laurence M. Ball</a> and <a href="/wiki/David_Romer" title="David Romer">David Romer</a> showed in 1990 that <a href="/wiki/Real_rigidities" class="mw-redirect" title="Real rigidities">real rigidities</a> could interact with nominal rigidities to create significant disequilibrium.<sup id="cite_ref-18" class="reference"><a href="#cite_note-18"><span class="cite-bracket">[</span>18<span class="cite-bracket">]</span></a></sup> Real rigidities occur whenever a firm is slow to adjust its real prices in response to a changing economic environment. For example, a firm can face real rigidities if it has market power or if its costs for inputs and wages are locked-in by a contract.<sup id="cite_ref-19" class="reference"><a href="#cite_note-19"><span class="cite-bracket">[</span>19<span class="cite-bracket">]</span></a></sup> Ball and Romer argued that real rigidities in the labor market keep a firm's costs high, which makes firms hesitant to cut prices and lose revenue. The expense created by real rigidities combined with the menu cost of changing prices makes it less likely that firm will cut prices to a market clearing level.<sup id="cite_ref-20" class="reference"><a href="#cite_note-20"><span class="cite-bracket">[</span>20<span class="cite-bracket">]</span></a></sup> </p><p>Even if prices are perfectly flexible, imperfect competition can affect the influence of fiscal policy in terms of the multiplier. Huw Dixon and Gregory Mankiw developed independently simple general equilibrium models showing that the fiscal multiplier could be increasing with the degree of imperfect competition in the output market.<sup id="cite_ref-21" class="reference"><a href="#cite_note-21"><span class="cite-bracket">[</span>21<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-22" class="reference"><a href="#cite_note-22"><span class="cite-bracket">[</span>22<span class="cite-bracket">]</span></a></sup> The reason for this is that <a href="/wiki/Imperfect_competition" title="Imperfect competition">imperfect competition</a> in the output market tends to reduce the <a href="/wiki/Real_wage" class="mw-redirect" title="Real wage">real wage</a>, leading to the household substituting away from <a href="/wiki/Consumption_(economics)" title="Consumption (economics)">consumption</a> towards <a href="/wiki/Leisure" title="Leisure">leisure</a>. When <a href="/wiki/Government_spending" title="Government spending">government spending</a> is increased, the corresponding increase in <a href="/wiki/Taxation" class="mw-redirect" title="Taxation">lump-sum taxation</a> causes both leisure and consumption to decrease (assuming that they are both a normal good). The greater the degree of imperfect competition in the output market, the lower the <a href="/wiki/Real_wage" class="mw-redirect" title="Real wage">real wage</a> and hence the more the reduction falls on leisure (i.e. households work more) and less on consumption. Hence the <a href="/wiki/Fiscal_multiplier" title="Fiscal multiplier">fiscal multiplier</a> is less than one, but increasing in the degree of imperfect competition in the output market.<sup id="cite_ref-23" class="reference"><a href="#cite_note-23"><span class="cite-bracket">[</span>23<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="The_Calvo_staggered_contracts_model">The Calvo staggered contracts model</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=5" title="Edit section: The Calvo staggered contracts model"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In 1983 <a href="/wiki/Guillermo_Calvo" title="Guillermo Calvo">Guillermo Calvo</a> wrote "Staggered Prices in a Utility-Maximizing Framework".<sup id="cite_ref-24" class="reference"><a href="#cite_note-24"><span class="cite-bracket">[</span>24<span class="cite-bracket">]</span></a></sup> The original article was written in a <a href="/wiki/Discrete_time_and_continuous_time" title="Discrete time and continuous time">continuous time</a> mathematical framework, but nowadays is mostly used in its <a href="/wiki/Discrete_time_and_continuous_time" title="Discrete time and continuous time">discrete time</a> version. The Calvo model has become the most common way to model nominal rigidity in new Keynesian models. There is a probability that the firm can reset its price in any one period <span class="texhtml mvar" style="font-style:italic;">h</span> (the <a href="/wiki/Hazard_rate" class="mw-redirect" title="Hazard rate">hazard rate</a>), or equivalently the probability (<span class="texhtml">1 − <var style="padding-right: 1px;">h</var></span>) that the price will remain unchanged in that period (the survival rate). The probability <span class="texhtml mvar" style="font-style:italic;">h</span> is sometimes called the "Calvo probability" in this context. In the Calvo model the crucial feature is that the price-setter does not know how long the nominal price will remain in place, in contrast to the Taylor model where the length of contract is known <i>ex ante</i>. </p> <div class="mw-heading mw-heading4"><h4 id="Coordination_failure">Coordination failure</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=6" title="Edit section: Coordination failure"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Coordination_failure_chart.svg" class="mw-file-description"><img alt="Chart showing an equilibrium line at 45 degrees intersected three times by an s-shaped line." src="//upload.wikimedia.org/wikipedia/commons/thumb/d/d9/Coordination_failure_chart.svg/220px-Coordination_failure_chart.svg.png" decoding="async" width="220" height="180" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/d/d9/Coordination_failure_chart.svg/330px-Coordination_failure_chart.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/d/d9/Coordination_failure_chart.svg/440px-Coordination_failure_chart.svg.png 2x" data-file-width="550" data-file-height="450" /></a><figcaption>In this model of coordination failure, a representative firm <span class="texhtml"><var style="padding-right: 1px;">e</var><sub><var style="padding-right: 1px;">i</var></sub></span> makes its output decisions based on the average output of all firms (<span class="texhtml mvar" style="font-style:italic;">ē</span>). When the representative firm produces as much as the average firm (<span class="texhtml"><var style="padding-right: 1px;">e</var><sub><var style="padding-right: 1px;">i</var></sub> = <var style="padding-right: 1px;">ē</var></span>), the economy is at an equilibrium represented by the 45-degree line. The decision curve intersects with the equilibrium line at three equilibrium points. The firms could coordinate and produce at the optimal level of point B, but, without coordination, firms might produce at a less efficient equilibrium.<sup id="cite_ref-Cooper,_Russel_1988_page_446_25-0" class="reference"><a href="#cite_note-Cooper,_Russel_1988_page_446-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup></figcaption></figure> <p><a href="/wiki/Coordination_failure_(economics)" title="Coordination failure (economics)">Coordination failure</a> was another important new Keynesian concept developed as another potential explanation for recessions and unemployment.<sup id="cite_ref-26" class="reference"><a href="#cite_note-26"><span class="cite-bracket">[</span>26<span class="cite-bracket">]</span></a></sup> In recessions a factory can go idle even though there are people willing to work in it, and people willing to buy its production if they had jobs. In such a scenario, economic downturns appear to be the result of coordination failure: The invisible hand fails to coordinate the usual, optimal, flow of production and consumption.<sup id="cite_ref-27" class="reference"><a href="#cite_note-27"><span class="cite-bracket">[</span>27<span class="cite-bracket">]</span></a></sup> <a href="/wiki/Russell_W._Cooper_(economist)" class="mw-redirect" title="Russell W. Cooper (economist)">Russell Cooper</a> and Andrew John's 1988 paper "Coordinating Coordination Failures in Keynesian Models" expressed a general form of coordination as models with multiple equilibria where agents could coordinate to improve (or at least not harm) each of their respective situations.<sup id="cite_ref-Cooper,_Russel_1988_page_446_25-1" class="reference"><a href="#cite_note-Cooper,_Russel_1988_page_446-25"><span class="cite-bracket">[</span>25<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-28" class="reference"><a href="#cite_note-28"><span class="cite-bracket">[</span>28<span class="cite-bracket">]</span></a></sup> Cooper and John based their work on earlier models including <a href="/wiki/Peter_A._Diamond" class="mw-redirect" title="Peter A. Diamond">Peter Diamond</a>'s 1982 <a href="/wiki/Diamond_coconut_model" title="Diamond coconut model">coconut model</a>, which demonstrated a case of coordination failure involving <a href="/wiki/Matching_theory_(macroeconomics)" class="mw-redirect" title="Matching theory (macroeconomics)">search and matching theory</a>.<sup id="cite_ref-29" class="reference"><a href="#cite_note-29"><span class="cite-bracket">[</span>29<span class="cite-bracket">]</span></a></sup> In Diamond's model producers are more likely to produce if they see others producing. The increase in possible trading partners increases the likelihood of a given producer finding someone to trade with. As in other cases of coordination failure, Diamond's model has multiple equilibria, and the welfare of one agent is dependent on the decisions of others.<sup id="cite_ref-30" class="reference"><a href="#cite_note-30"><span class="cite-bracket">[</span>30<span class="cite-bracket">]</span></a></sup> Diamond's model is an example of a "thick-market <a href="/wiki/Externality" title="Externality">externality</a>" that causes markets to function better when more people and firms participate in them.<sup id="cite_ref-31" class="reference"><a href="#cite_note-31"><span class="cite-bracket">[</span>31<span class="cite-bracket">]</span></a></sup> Other potential sources of coordination failure include <a href="/wiki/Self-fulfilling_prophecies" class="mw-redirect" title="Self-fulfilling prophecies">self-fulfilling prophecies</a>. If a firm anticipates a fall in demand, they might cut back on hiring. A lack of job vacancies might worry workers who then cut back on their consumption. This fall in demand meets the firm's expectations, but it is entirely due to the firm's own actions. </p> <div class="mw-heading mw-heading4"><h4 id="Labor_market_failures:_Efficiency_wages">Labor market failures: Efficiency wages</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=7" title="Edit section: Labor market failures: Efficiency wages"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>New Keynesians offered explanations for the failure of the labor market to clear. In a Walrasian market, unemployed workers bid down wages until the demand for workers meets the supply.<sup id="cite_ref-32" class="reference"><a href="#cite_note-32"><span class="cite-bracket">[</span>32<span class="cite-bracket">]</span></a></sup> If markets are Walrasian, the ranks of the unemployed would be limited to workers transitioning between jobs and workers who choose not to work because wages are too low to attract them.<sup id="cite_ref-33" class="reference"><a href="#cite_note-33"><span class="cite-bracket">[</span>33<span class="cite-bracket">]</span></a></sup> They developed several theories explaining why markets might leave willing workers unemployed.<sup id="cite_ref-FOOTNOTERomer2005437_34-0" class="reference"><a href="#cite_note-FOOTNOTERomer2005437-34"><span class="cite-bracket">[</span>34<span class="cite-bracket">]</span></a></sup> The most important of these theories was the <a href="/wiki/Efficiency_wages" class="mw-redirect" title="Efficiency wages">efficiency wage theory</a> used to explain <a href="/wiki/Hysteresis_(economics)" title="Hysteresis (economics)">long-term effects of previous unemployment</a>, where short-term increases in unemployment become permanent and lead to higher levels of unemployment in the long-run.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35"><span class="cite-bracket">[</span>35<span class="cite-bracket">]</span></a></sup> </p> <figure class="mw-default-size mw-halign-right" typeof="mw:File/Thumb"><a href="/wiki/File:Efficiency_wage_Shapiro_Stiglitz.svg" class="mw-file-description"><img alt="Chart showing the relationship of the non-shirking condition and full employment" src="//upload.wikimedia.org/wikipedia/commons/thumb/1/1c/Efficiency_wage_Shapiro_Stiglitz.svg/220px-Efficiency_wage_Shapiro_Stiglitz.svg.png" decoding="async" width="220" height="176" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/commons/thumb/1/1c/Efficiency_wage_Shapiro_Stiglitz.svg/330px-Efficiency_wage_Shapiro_Stiglitz.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/1/1c/Efficiency_wage_Shapiro_Stiglitz.svg/440px-Efficiency_wage_Shapiro_Stiglitz.svg.png 2x" data-file-width="500" data-file-height="400" /></a><figcaption>In the Shapiro-Stiglitz model workers are paid at a level where they do not shirk, preventing wages from dropping to full employment levels. The curve for the no-shirking condition (labeled NSC) goes to infinity at full employment.</figcaption></figure> <p>In efficiency wage models, workers are paid at levels that maximize productivity instead of clearing the market.<sup id="cite_ref-36" class="reference"><a href="#cite_note-36"><span class="cite-bracket">[</span>36<span class="cite-bracket">]</span></a></sup> For example, in developing countries, firms might pay more than a market rate to ensure their workers can afford enough nutrition to be productive.<sup id="cite_ref-37" class="reference"><a href="#cite_note-37"><span class="cite-bracket">[</span>37<span class="cite-bracket">]</span></a></sup> Firms might also pay higher wages to increase loyalty and morale, possibly leading to better productivity.<sup id="cite_ref-38" class="reference"><a href="#cite_note-38"><span class="cite-bracket">[</span>38<span class="cite-bracket">]</span></a></sup> Firms can also pay higher than market wages to forestall shirking. Shirking models were particularly influential.<sup id="cite_ref-39" class="reference"><a href="#cite_note-39"><span class="cite-bracket">[</span>39<span class="cite-bracket">]</span></a></sup><a href="/wiki/Carl_Shapiro" title="Carl Shapiro">Carl Shapiro</a> and <a href="/wiki/Joseph_Stiglitz" title="Joseph Stiglitz">Joseph Stiglitz</a>'s 1984 paper "Equilibrium Unemployment as a Worker Discipline Device" created a model where employees tend to avoid work unless firms can monitor worker effort and threaten slacking employees with unemployment.<sup id="cite_ref-40" class="reference"><a href="#cite_note-40"><span class="cite-bracket">[</span>40<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-41" class="reference"><a href="#cite_note-41"><span class="cite-bracket">[</span>41<span class="cite-bracket">]</span></a></sup> If the economy is at full employment, a fired shirker simply moves to a new job.<sup id="cite_ref-42" class="reference"><a href="#cite_note-42"><span class="cite-bracket">[</span>42<span class="cite-bracket">]</span></a></sup> Individual firms pay their workers a premium over the market rate to ensure their workers would rather work and keep their current job instead of shirking and risk having to move to a new job. Since each firm pays more than market clearing wages, the aggregated labor market fails to clear. This creates a pool of unemployed laborers and adds to the expense of getting fired. Workers not only risk a lower wage, they risk being stuck in the pool of unemployed. Keeping wages above market clearing levels creates a serious disincentive to shirk that makes workers more efficient even though it leaves some willing workers unemployed.<sup id="cite_ref-43" class="reference"><a href="#cite_note-43"><span class="cite-bracket">[</span>43<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="1990s">1990s</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=8" title="Edit section: 1990s"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <div class="mw-heading mw-heading4"><h4 id="The_new_neoclassical_synthesis">The new neoclassical synthesis</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=9" title="Edit section: The new neoclassical synthesis"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In the early 1990s, economists began to combine the elements of new Keynesian economics developed in the 1980s and earlier with <a href="/wiki/Real_Business_Cycle_Theory" class="mw-redirect" title="Real Business Cycle Theory">Real Business Cycle Theory</a>. RBC models were dynamic but assumed perfect competition; new Keynesian models were primarily static but based on imperfect competition. The <a href="/wiki/New_neoclassical_synthesis" title="New neoclassical synthesis">new neoclassical synthesis</a> essentially combined the dynamic aspects of RBC with imperfect competition and nominal rigidities of new Keynesian models. Tack Yun was one of the first to do this, in a model that used the <a href="/wiki/Calvo_(staggered)_contracts" title="Calvo (staggered) contracts">Calvo pricing</a> model.<sup id="cite_ref-44" class="reference"><a href="#cite_note-44"><span class="cite-bracket">[</span>44<span class="cite-bracket">]</span></a></sup> Goodfriend and King proposed a list of four elements that are central to the new synthesis: intertemporal optimization, rational expectations, imperfect competition, and costly price adjustment (menu costs).<sup id="cite_ref-45" class="reference"><a href="#cite_note-45"><span class="cite-bracket">[</span>45<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-46" class="reference"><a href="#cite_note-46"><span class="cite-bracket">[</span>46<span class="cite-bracket">]</span></a></sup> Goodfriend and King also find that the consensus models produce certain policy implications: whilst monetary policy can affect real output in the short-run, but there is no long-run trade-off: money is not <a href="/wiki/Neutrality_of_money" title="Neutrality of money">neutral</a> in the short-run but it is in the long-run. Inflation has negative welfare effects. It is important for central banks to maintain credibility through rules based policy like inflation targeting. </p> <div class="mw-heading mw-heading4"><h4 id="Taylor_Rule">Taylor Rule</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=10" title="Edit section: Taylor Rule"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In 1993,<sup id="cite_ref-47" class="reference"><a href="#cite_note-47"><span class="cite-bracket">[</span>47<span class="cite-bracket">]</span></a></sup> John B Taylor formulated the idea of a <b><a href="/wiki/Taylor_rule" title="Taylor rule">Taylor rule</a></b>, which is a reduced form approximation of the responsiveness of the <a href="/wiki/Nominal_interest_rate" title="Nominal interest rate">nominal interest rate</a>, as set by the <a href="/wiki/Central_bank" title="Central bank">central bank</a>, to changes in inflation, <a href="/wiki/Gross_domestic_product" title="Gross domestic product">output</a>, or other economic conditions. In particular, the rule describes how, for each one-percent increase in inflation, the central bank tends to raise the nominal interest rate by more than one percentage point. This aspect of the rule is often called the <b>Taylor principle</b>. Although such rules provide concise, descriptive proxies for central bank policy, they are not, in practice, explicitly proscriptively considered by central banks when setting nominal rates. </p><p>Taylor's original version of the rule describes how the nominal interest rate responds to divergences of actual inflation rates from <i>target</i> inflation rates and of actual gross domestic product (GDP) from <i>potential</i> GDP: </p><p><span class="mwe-math-element"><span class="mwe-math-mathml-display mwe-math-mathml-a11y" style="display: none;"><math display="block" xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle i_{t}=\pi _{t}+r_{t}^{*}+a_{\pi }(\pi _{t}-\pi _{t}^{*})+a_{y}(y_{t}-y_{t}^{*}).}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <msub> <mi>i</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo>=</mo> <msub> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo>+</mo> <msubsup> <mi>r</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> <mrow class="MJX-TeXAtom-ORD"> <mo>∗</mo> </mrow> </msubsup> <mo>+</mo> <msub> <mi>a</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>π</mi> </mrow> </msub> <mo stretchy="false">(</mo> <msub> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo>−</mo> <msubsup> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> <mrow class="MJX-TeXAtom-ORD"> <mo>∗</mo> </mrow> </msubsup> <mo stretchy="false">)</mo> <mo>+</mo> <msub> <mi>a</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>y</mi> </mrow> </msub> <mo stretchy="false">(</mo> <msub> <mi>y</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo>−</mo> <msubsup> <mi>y</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> <mrow class="MJX-TeXAtom-ORD"> <mo>∗</mo> </mrow> </msubsup> <mo stretchy="false">)</mo> <mo>.</mo> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle i_{t}=\pi _{t}+r_{t}^{*}+a_{\pi }(\pi _{t}-\pi _{t}^{*})+a_{y}(y_{t}-y_{t}^{*}).}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/b422376e338e2a6821d0b7ed8167429da264c818" class="mwe-math-fallback-image-display mw-invert skin-invert" aria-hidden="true" style="vertical-align: -1.005ex; width:40.851ex; height:3.009ex;" alt="{\displaystyle i_{t}=\pi _{t}+r_{t}^{*}+a_{\pi }(\pi _{t}-\pi _{t}^{*})+a_{y}(y_{t}-y_{t}^{*}).}"></span> </p><p>In this equation, <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \,i_{t}\,}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mspace width="thinmathspace" /> <msub> <mi>i</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mspace width="thinmathspace" /> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \,i_{t}\,}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/66beb59459029e09f988ee95c8cfe5f9bd8758ff" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.671ex; width:2.403ex; height:2.509ex;" alt="{\displaystyle \,i_{t}\,}"></span> is the target short-term <a href="/wiki/Nominal_interest_rate" title="Nominal interest rate">nominal interest rate</a> (e.g. the <a href="/wiki/Federal_funds_rate" title="Federal funds rate">federal funds rate</a> in the US, the <a href="/wiki/Official_bank_rate" title="Official bank rate">Bank of England base rate</a> in the UK), <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \,\pi _{t}\,}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mspace width="thinmathspace" /> <msub> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mspace width="thinmathspace" /> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \,\pi _{t}\,}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/ca8dac7c61a6bb1439e89dff079a7d0511c4e0a6" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.671ex; width:2.925ex; height:2.009ex;" alt="{\displaystyle \,\pi _{t}\,}"></span> is the rate of inflation as measured by the <a href="/wiki/GDP_deflator" title="GDP deflator">GDP deflator</a>, <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \pi _{t}^{*}}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <msubsup> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> <mrow class="MJX-TeXAtom-ORD"> <mo>∗</mo> </mrow> </msubsup> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \pi _{t}^{*}}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/05fd4f30920cec20c1e29da234bdcc6274ab8242" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -1.005ex; width:2.388ex; height:2.843ex;" alt="{\displaystyle \pi _{t}^{*}}"></span> is the desired rate of inflation, <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle r_{t}^{*}}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <msubsup> <mi>r</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> <mrow class="MJX-TeXAtom-ORD"> <mo>∗</mo> </mrow> </msubsup> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle r_{t}^{*}}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/bc58c437226952cff9d048d1f72d23a6003433e6" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -1.005ex; width:2.103ex; height:2.843ex;" alt="{\displaystyle r_{t}^{*}}"></span> is the assumed equilibrium real interest rate, <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \,y_{t}\,}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mspace width="thinmathspace" /> <msub> <mi>y</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mspace width="thinmathspace" /> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \,y_{t}\,}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/fea9882b96b5fd262e3c428b4b3ff1c3b50821c9" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.671ex; width:2.739ex; height:2.009ex;" alt="{\displaystyle \,y_{t}\,}"></span> is the logarithm of real GDP, and <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle y_{t}^{*}}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <msubsup> <mi>y</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> <mrow class="MJX-TeXAtom-ORD"> <mo>∗</mo> </mrow> </msubsup> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle y_{t}^{*}}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/1f0511a4e7c873ad2fb2cd48951e698f25de4a60" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -1.005ex; width:2.215ex; height:2.843ex;" alt="{\displaystyle y_{t}^{*}}"></span> is the logarithm of <a href="/wiki/Potential_output" title="Potential output">potential output</a>, as determined by a linear trend. </p> <div class="mw-heading mw-heading4"><h4 id="The_New_Keynesian_Phillips_curve">The New Keynesian Phillips curve</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=11" title="Edit section: The New Keynesian Phillips curve"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The New Keynesian Phillips curve was originally derived by Roberts in 1995,<sup id="cite_ref-48" class="reference"><a href="#cite_note-48"><span class="cite-bracket">[</span>48<span class="cite-bracket">]</span></a></sup> and has since been used in most state-of-the-art New Keynesian DSGE models.<sup id="cite_ref-49" class="reference"><a href="#cite_note-49"><span class="cite-bracket">[</span>49<span class="cite-bracket">]</span></a></sup> The new Keynesian Phillips curve says that this period's inflation depends on current output and the expectations of next period's inflation. The curve is derived from the dynamic Calvo model of pricing and in mathematical terms is: </p><p><span class="mwe-math-element"><span class="mwe-math-mathml-display mwe-math-mathml-a11y" style="display: none;"><math display="block" xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \pi _{t}=\beta E_{t}[\pi _{t+1}]+\kappa y_{t}}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <msub> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo>=</mo> <mi>β</mi> <msub> <mi>E</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo stretchy="false">[</mo> <msub> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> <mo>+</mo> <mn>1</mn> </mrow> </msub> <mo stretchy="false">]</mo> <mo>+</mo> <mi>κ</mi> <msub> <mi>y</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \pi _{t}=\beta E_{t}[\pi _{t+1}]+\kappa y_{t}}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/0ef7dd57c38352c58215d6a0a3e102a4218956f6" class="mwe-math-fallback-image-display mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.838ex; width:20.812ex; height:2.843ex;" alt="{\displaystyle \pi _{t}=\beta E_{t}[\pi _{t+1}]+\kappa y_{t}}"></span> </p><p>The current period <span class="texhtml mvar" style="font-style:italic;">t</span> expectations of next period's inflation are incorporated as <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \beta E_{t}[\pi _{t+1}]}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mi>β</mi> <msub> <mi>E</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo stretchy="false">[</mo> <msub> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> <mo>+</mo> <mn>1</mn> </mrow> </msub> <mo stretchy="false">]</mo> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \beta E_{t}[\pi _{t+1}]}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/665311ff5571a987a4e48a2435270b77aa595d37" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.838ex; width:9.418ex; height:2.843ex;" alt="{\displaystyle \beta E_{t}[\pi _{t+1}]}"></span>, where <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \beta }"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mi>β</mi> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \beta }</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/7ed48a5e36207156fb792fa79d29925d2f7901e8" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.671ex; width:1.332ex; height:2.509ex;" alt="{\displaystyle \beta }"></span> is the discount factor. The constant <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \kappa }"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mi>κ</mi> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \kappa }</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/54ddec2e922c5caea4e47d04feef86e782dc8e6d" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.338ex; width:1.339ex; height:1.676ex;" alt="{\displaystyle \kappa }"></span> captures the response of inflation to output, and is largely determined by the probability of changing price in any period, which is <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle h}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mi>h</mi> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle h}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/b26be3e694314bc90c3215047e4a2010c6ee184a" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.338ex; width:1.339ex; height:2.176ex;" alt="{\displaystyle h}"></span>: </p><p><span class="mwe-math-element"><span class="mwe-math-mathml-display mwe-math-mathml-a11y" style="display: none;"><math display="block" xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle \kappa ={\frac {h[1-(1-h)\beta ]}{1-h}}\gamma }"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mi>κ</mi> <mo>=</mo> <mrow class="MJX-TeXAtom-ORD"> <mfrac> <mrow> <mi>h</mi> <mo stretchy="false">[</mo> <mn>1</mn> <mo>−</mo> <mo stretchy="false">(</mo> <mn>1</mn> <mo>−</mo> <mi>h</mi> <mo stretchy="false">)</mo> <mi>β</mi> <mo stretchy="false">]</mo> </mrow> <mrow> <mn>1</mn> <mo>−</mo> <mi>h</mi> </mrow> </mfrac> </mrow> <mi>γ</mi> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle \kappa ={\frac {h[1-(1-h)\beta ]}{1-h}}\gamma }</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/c91590f920d1dc4d17ea89f5ce58c14b50261a9a" class="mwe-math-fallback-image-display mw-invert skin-invert" aria-hidden="true" style="vertical-align: -2.171ex; width:21.655ex; height:6.009ex;" alt="{\displaystyle \kappa ={\frac {h[1-(1-h)\beta ]}{1-h}}\gamma }"></span>. </p><p>The less rigid nominal prices are (the higher is <span class="mwe-math-element"><span class="mwe-math-mathml-inline mwe-math-mathml-a11y" style="display: none;"><math xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle h}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <mi>h</mi> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle h}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/b26be3e694314bc90c3215047e4a2010c6ee184a" class="mwe-math-fallback-image-inline mw-invert skin-invert" aria-hidden="true" style="vertical-align: -0.338ex; width:1.339ex; height:2.176ex;" alt="{\displaystyle h}"></span>), the greater the effect of output on current inflation. </p> <div class="mw-heading mw-heading4"><h4 id="The_science_of_monetary_policy">The science of monetary policy</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=12" title="Edit section: The science of monetary policy"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The ideas developed in the 1990s were put together to develop the new Keynesian <a href="/wiki/Dynamic_stochastic_general_equilibrium" title="Dynamic stochastic general equilibrium">dynamic stochastic general equilibrium</a> used to analyze monetary policy. This culminated in the three-equation new Keynesian model found in the survey by <a href="/wiki/Richard_Clarida" title="Richard Clarida">Richard Clarida</a>, <a href="/wiki/Jordi_Gali" class="mw-redirect" title="Jordi Gali">Jordi Gali</a>, and <a href="/wiki/Mark_Gertler_(economist)" title="Mark Gertler (economist)">Mark Gertler</a> in the <i><a href="/wiki/Journal_of_Economic_Literature" title="Journal of Economic Literature">Journal of Economic Literature</a></i>.<sup id="cite_ref-50" class="reference"><a href="#cite_note-50"><span class="cite-bracket">[</span>50<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-51" class="reference"><a href="#cite_note-51"><span class="cite-bracket">[</span>51<span class="cite-bracket">]</span></a></sup> It combines the two equations of the new Keynesian Phillips curve and the Taylor rule with the <i>dynamic IS curve</i> derived from the optimal <a href="/wiki/Random_walk_model_of_consumption" title="Random walk model of consumption">dynamic consumption equation</a> (household's Euler equation). </p><p><span class="mwe-math-element"><span class="mwe-math-mathml-display mwe-math-mathml-a11y" style="display: none;"><math display="block" xmlns="http://www.w3.org/1998/Math/MathML" alttext="{\displaystyle y_{t}=E_{t}y_{t+1}-{\frac {1}{\sigma }}(i_{t}-E_{t}\pi _{t+1})+v_{t}}"> <semantics> <mrow class="MJX-TeXAtom-ORD"> <mstyle displaystyle="true" scriptlevel="0"> <msub> <mi>y</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo>=</mo> <msub> <mi>E</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <msub> <mi>y</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> <mo>+</mo> <mn>1</mn> </mrow> </msub> <mo>−</mo> <mrow class="MJX-TeXAtom-ORD"> <mfrac> <mn>1</mn> <mi>σ</mi> </mfrac> </mrow> <mo stretchy="false">(</mo> <msub> <mi>i</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <mo>−</mo> <msub> <mi>E</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> <msub> <mi>π</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> <mo>+</mo> <mn>1</mn> </mrow> </msub> <mo stretchy="false">)</mo> <mo>+</mo> <msub> <mi>v</mi> <mrow class="MJX-TeXAtom-ORD"> <mi>t</mi> </mrow> </msub> </mstyle> </mrow> <annotation encoding="application/x-tex">{\displaystyle y_{t}=E_{t}y_{t+1}-{\frac {1}{\sigma }}(i_{t}-E_{t}\pi _{t+1})+v_{t}}</annotation> </semantics> </math></span><img src="https://wikimedia.org/api/rest_v1/media/math/render/svg/d5c9a7761e8fb51529be26004b6bbde9b0c5d2b6" class="mwe-math-fallback-image-display mw-invert skin-invert" aria-hidden="true" style="vertical-align: -1.838ex; width:34.542ex; height:5.176ex;" alt="{\displaystyle y_{t}=E_{t}y_{t+1}-{\frac {1}{\sigma }}(i_{t}-E_{t}\pi _{t+1})+v_{t}}"></span> </p><p>These three equations formed a relatively simple model which could be used for the theoretical analysis of policy issues. However, the model was oversimplified in some respects (for example, there is no capital or investment). Also, it does not perform well empirically. </p> <div class="mw-heading mw-heading3"><h3 id="2000s">2000s</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=13" title="Edit section: 2000s"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>In the new millennium there have been several advances in new Keynesian economics. </p> <div class="mw-heading mw-heading4"><h4 id="The_introduction_of_imperfectly_competitive_labor_markets">The introduction of imperfectly competitive labor markets</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=14" title="Edit section: The introduction of imperfectly competitive labor markets"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Whilst the models of the 1990s focused on sticky prices in the output market, in 2000 Christopher Erceg, Dale Henderson and Andrew Levin adopted the Blanchard and Kiyotaki model of unionized labor markets by combining it with the Calvo pricing approach and introduced it into a new Keynesian DSGE model.<sup id="cite_ref-52" class="reference"><a href="#cite_note-52"><span class="cite-bracket">[</span>52<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading4"><h4 id="The_development_of_complex_DSGE_models">The development of complex DSGE models</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=15" title="Edit section: The development of complex DSGE models"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>To have models that worked well with the data and could be used for policy simulations, quite complicated new Keynesian models were developed with several features. Seminal papers were published by Frank Smets and Rafael Wouters<sup id="cite_ref-53" class="reference"><a href="#cite_note-53"><span class="cite-bracket">[</span>53<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-54" class="reference"><a href="#cite_note-54"><span class="cite-bracket">[</span>54<span class="cite-bracket">]</span></a></sup> and also <a href="/wiki/Lawrence_J._Christiano" title="Lawrence J. Christiano">Lawrence J. Christiano</a>, <a href="/wiki/Martin_Eichenbaum" title="Martin Eichenbaum">Martin Eichenbaum</a> and Charles Evans<sup id="cite_ref-55" class="reference"><a href="#cite_note-55"><span class="cite-bracket">[</span>55<span class="cite-bracket">]</span></a></sup> The common features of these models included: </p> <ul><li>Habit persistence. The marginal utility of consumption depends on past consumption.</li> <li>Calvo pricing in both output and product markets, with indexation so that when wages and prices are not explicitly reset, they are updated for inflation.</li> <li>Capital adjustment costs and variable <a href="/wiki/Capacity_utilization" title="Capacity utilization">capital use</a>.</li> <li>New shocks <ul><li>Demand shocks, which affect the marginal utility of consumption</li> <li><a href="/wiki/Markup_(business)" title="Markup (business)">Markup shocks</a> that influence the desired markup of price over marginal cost.</li></ul></li> <li>Monetary policy is represented by a Taylor rule.</li> <li><a href="/wiki/Bayes_estimator" title="Bayes estimator">Bayesian estimation</a> methods.</li></ul> <div class="mw-heading mw-heading4"><h4 id="Sticky_information">Sticky information</h4><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=16" title="Edit section: Sticky information"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The idea of sticky information found in Fischer's model was later developed by Gregory Mankiw and <a href="/wiki/Ricardo_Reis" title="Ricardo Reis">Ricardo Reis</a>.<sup id="cite_ref-56" class="reference"><a href="#cite_note-56"><span class="cite-bracket">[</span>56<span class="cite-bracket">]</span></a></sup> This added a new feature to Fischer's model: there is a fixed probability that a worker can replan their wages or prices each period. Using quarterly data, they assumed a value of 25%: that is, each quarter 25% of randomly chosen firms/unions can plan a trajectory of current and future prices based on current information. Thus if we consider the current period: 25% of prices will be based on the latest information available; the rest on information that was available when they last were able to replan their price trajectory. Mankiw and Reis found that the model of sticky information provided a good way of explaining inflation persistence. </p><p>Sticky information models do not have nominal rigidity: firms or unions are free to choose different prices or wages for each period. It is the information that is sticky, not the prices. Thus when a firm gets lucky and can re-plan its current and future prices, it will choose a trajectory of what it believes will be the optimal prices now and in the future. In general, this will involve setting a different price every period covered by the plan. This is at odds with the empirical evidence on prices.<sup id="cite_ref-57" class="reference"><a href="#cite_note-57"><span class="cite-bracket">[</span>57<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-Knotec2010_58-0" class="reference"><a href="#cite_note-Knotec2010-58"><span class="cite-bracket">[</span>58<span class="cite-bracket">]</span></a></sup> There are now many studies of price rigidity in different countries: the United States,<sup id="cite_ref-KlenowKryvtsov2008_59-0" class="reference"><a href="#cite_note-KlenowKryvtsov2008-59"><span class="cite-bracket">[</span>59<span class="cite-bracket">]</span></a></sup> the Eurozone,<sup id="cite_ref-60" class="reference"><a href="#cite_note-60"><span class="cite-bracket">[</span>60<span class="cite-bracket">]</span></a></sup> the United Kingdom<sup id="cite_ref-61" class="reference"><a href="#cite_note-61"><span class="cite-bracket">[</span>61<span class="cite-bracket">]</span></a></sup> and others. These studies all show that whilst there are some sectors where prices change frequently, there are also other sectors where prices remain fixed over time. The lack of sticky prices in the sticky information model is inconsistent with the behavior of prices in most of the economy. This has led to attempts to formulate a "dual stickiness" model that combines sticky information with sticky prices.<sup id="cite_ref-Knotec2010_58-1" class="reference"><a href="#cite_note-Knotec2010-58"><span class="cite-bracket">[</span>58<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-62" class="reference"><a href="#cite_note-62"><span class="cite-bracket">[</span>62<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading3"><h3 id="2010s">2010s</h3><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=17" title="Edit section: 2010s"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>The 2010s saw the development of models incorporating household heterogeneity into the standard New Keynesian framework, commonly referred as 'HANK' models (Heterogeneous Agent New Keynesian). In addition to sticky prices, a typical HANK model features uninsurable idiosyncratic labor income risk which gives rise to a non-degenerate wealth distribution. The earliest models with these two features include Oh and <a href="/wiki/Ricardo_Reis" title="Ricardo Reis">Reis</a> (2012),<sup id="cite_ref-63" class="reference"><a href="#cite_note-63"><span class="cite-bracket">[</span>63<span class="cite-bracket">]</span></a></sup> McKay and <a href="/wiki/Ricardo_Reis" title="Ricardo Reis">Reis</a> (2016)<sup id="cite_ref-64" class="reference"><a href="#cite_note-64"><span class="cite-bracket">[</span>64<span class="cite-bracket">]</span></a></sup> and <a href="/wiki/Veronica_Guerrieri" title="Veronica Guerrieri">Guerrieri</a> and Lorenzoni (2017).<sup id="cite_ref-65" class="reference"><a href="#cite_note-65"><span class="cite-bracket">[</span>65<span class="cite-bracket">]</span></a></sup> </p><p>The name "HANK model" was coined by <a href="/wiki/Greg_Kaplan" title="Greg Kaplan">Greg Kaplan</a>, <a href="/wiki/Benjamin_Moll" title="Benjamin Moll">Benjamin Moll</a> and <a href="/wiki/Gianluca_Violante" title="Gianluca Violante">Gianluca Violante</a> in a 2018 paper<sup id="cite_ref-66" class="reference"><a href="#cite_note-66"><span class="cite-bracket">[</span>66<span class="cite-bracket">]</span></a></sup> that additionally models households as accumulating two types of assets, one liquid and the other illiquid. This translates into rich heterogeneity in portfolio composition across households. In particular, the model fits empirical evidence by featuring a large share of households holding little liquid wealth: the 'hand-to-mouth' households. Consistent with empirical evidence,<sup id="cite_ref-67" class="reference"><a href="#cite_note-67"><span class="cite-bracket">[</span>67<span class="cite-bracket">]</span></a></sup> about two-thirds of these households hold non-trivial amounts of illiquid wealth, despite holding little liquid wealth. These households are known as wealthy hand-to-mouth households, a term introduced in a 2014 study of fiscal stimulus policies by Kaplan and Violante.<sup id="cite_ref-68" class="reference"><a href="#cite_note-68"><span class="cite-bracket">[</span>68<span class="cite-bracket">]</span></a></sup> </p><p>The existence of wealthy hand-to-mouth households in New Keynesian models matters for the effects of monetary policy, because the consumption behavior of those households is strongly sensitive to changes in disposable income, rather than variations in the interest rate (i.e. the price of future consumption relative to current consumption). The direct corollary is that monetary policy is mostly transmitted via general equilibrium effects that work through the household labor income, rather than through intertemporal substitution, which is the main transmission channel in Representative Agent New Keynesian (RANK) models. </p><p>There are two main implications for monetary policy. First, monetary policy interacts strongly with fiscal policy, because of the failure of <a href="/wiki/Ricardian_Equivalence" class="mw-redirect" title="Ricardian Equivalence">Ricardian Equivalence</a> due to the presence of hand-to-mouth households. In particular, changes in the interest rate shift the Government's budget constraint, and the fiscal response to this shift affects households' disposable income. Second, aggregate monetary shocks are not distributional neutral since they affect the return on capital, which affects households with different levels of wealth and assets differently. </p> <div class="mw-heading mw-heading2"><h2 id="Policy_implications">Policy implications</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=18" title="Edit section: Policy implications"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>New Keynesian economists agree with <a href="/wiki/New_Classical_Macroeconomics" class="mw-redirect" title="New Classical Macroeconomics">New Classical</a> economists that in the long run, the <a href="/wiki/Classical_dichotomy" title="Classical dichotomy">classical dichotomy</a> holds: changes in the <a href="/wiki/Money_supply" title="Money supply">money supply</a> are <a href="/wiki/Neutrality_of_money" title="Neutrality of money">neutral</a>. However, because prices are sticky in the New Keynesian model, an increase in the money supply (or equivalently, a decrease in the interest rate) does increase output and lower unemployment in the short run. Furthermore, some New Keynesian models confirm the non-neutrality of money under several conditions.<sup id="cite_ref-69" class="reference"><a href="#cite_note-69"><span class="cite-bracket">[</span>69<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-70" class="reference"><a href="#cite_note-70"><span class="cite-bracket">[</span>70<span class="cite-bracket">]</span></a></sup> </p><p>Nonetheless, New Keynesian economists do not advocate using expansive monetary policy for short run gains in output and employment, as it would raise inflationary expectations and thus store up problems for the future. Instead, they advocate using monetary policy for <a href="/wiki/Stabilization_policy" title="Stabilization policy">stabilization</a>. That is, suddenly increasing the money supply just to produce a temporary economic boom is not recommended as eliminating the increased inflationary expectations will be impossible without producing a recession. </p><p>However, when the economy is hit by some unexpected external shock, it may be a good idea to offset the macroeconomic effects of the shock with monetary policy. This is especially true if the unexpected shock is one (like a fall in consumer confidence) which tends to lower both output and inflation; in that case, expanding the money supply (lowering interest rates) helps by increasing output while stabilizing inflation and inflationary expectations. </p><p>Studies of optimal monetary policy in New Keynesian DSGE models have focused on interest rate rules (especially '<a href="/wiki/Taylor_rule" title="Taylor rule">Taylor rules</a>'), specifying how the central bank should adjust the <a href="/wiki/Nominal_interest_rate" title="Nominal interest rate">nominal interest rate</a> in response to changes in inflation and output. (More precisely, optimal rules usually react to changes in the <a href="/wiki/Output_gap" title="Output gap">output gap</a>, rather than changes in output <i>per se</i>.) In some simple New Keynesian DSGE models, it turns out that stabilizing inflation suffices, because maintaining perfectly stable inflation also stabilizes output and employment to the maximum degree desirable. Blanchard and Galí have called this property the 'divine coincidence'.<sup id="cite_ref-71" class="reference"><a href="#cite_note-71"><span class="cite-bracket">[</span>71<span class="cite-bracket">]</span></a></sup> </p><p>However, they also show that in models with more than one market imperfection (for example, frictions in adjusting the employment level, as well as sticky prices), there is no longer a 'divine coincidence', and instead there is a tradeoff between stabilizing inflation and stabilizing employment.<sup id="cite_ref-blanchardgali_nkunemp_72-0" class="reference"><a href="#cite_note-blanchardgali_nkunemp-72"><span class="cite-bracket">[</span>72<span class="cite-bracket">]</span></a></sup> Further, while some macroeconomists believe that New Keynesian models are on the verge of being useful for quarter-to-quarter quantitative policy advice, disagreement exists.<sup id="cite_ref-73" class="reference"><a href="#cite_note-73"><span class="cite-bracket">[</span>73<span class="cite-bracket">]</span></a></sup> </p><p>Alves (2014)<sup id="cite_ref-74" class="reference"><a href="#cite_note-74"><span class="cite-bracket">[</span>74<span class="cite-bracket">]</span></a></sup> showed that the divine coincidence does not necessarily hold in the non-linear form of the standard New-Keynesian model. This property would only hold if the monetary authority is set to keep the inflation rate at exactly 0%. At any other desired target for the inflation rate, there is an endogenous trade-off, even under the absence real imperfections such as sticky wages, and the divine coincidence no longer holds. </p> <div class="mw-heading mw-heading2"><h2 id="Relation_to_other_macroeconomic_schools">Relation to other macroeconomic schools</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=19" title="Edit section: Relation to other macroeconomic schools"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <p>Over the years, a sequence of 'new' macroeconomic theories related to or opposed to <a href="/wiki/Keynesian_economics" title="Keynesian economics">Keynesianism</a> have been influential.<sup id="cite_ref-75" class="reference"><a href="#cite_note-75"><span class="cite-bracket">[</span>75<span class="cite-bracket">]</span></a></sup> After <a href="/wiki/World_War_II" title="World War II">World War II</a>, <a href="/wiki/Paul_Samuelson" title="Paul Samuelson">Paul Samuelson</a> used the term <i><a href="/wiki/Neoclassical_synthesis" title="Neoclassical synthesis">neoclassical synthesis</a></i> to refer to the integration of Keynesian economics with <a href="/wiki/Neoclassical_economics" title="Neoclassical economics">neoclassical economics</a>. The idea was that the government and the central bank would maintain rough full employment, so that <a href="/wiki/Neoclassical_economics" title="Neoclassical economics">neoclassical</a> notions—centered on the axiom of the universality of <a href="/wiki/Scarcity" title="Scarcity">scarcity</a>—would apply. <a href="/wiki/John_Hicks" title="John Hicks">John Hicks</a>' <a href="/wiki/IS/LM" class="mw-redirect" title="IS/LM">IS/LM</a> model was central to the neoclassical synthesis. </p><p>Later work by economists such as <a href="/wiki/James_Tobin" title="James Tobin">James Tobin</a> and <a href="/wiki/Franco_Modigliani" title="Franco Modigliani">Franco Modigliani</a> involving more emphasis on the <a href="/wiki/Microfoundations" title="Microfoundations">microfoundations</a> of consumption and investment was sometimes called <a href="/wiki/Neo-Keynesianism" class="mw-redirect" title="Neo-Keynesianism">neo-Keynesianism</a>. It is often contrasted with the <a href="/wiki/Post-Keynesian_economics" title="Post-Keynesian economics">post-Keynesianism</a> of <a href="/wiki/Paul_Davidson_(economist)" title="Paul Davidson (economist)">Paul Davidson</a>, which emphasizes the role of fundamental <a href="/wiki/Uncertainty" title="Uncertainty">uncertainty</a> in economic life, especially concerning issues of private <a href="/wiki/Fixed_investment" title="Fixed investment">fixed investment</a>. </p><p>New Keynesianism was a response to <a href="/wiki/Robert_Lucas,_Jr." class="mw-redirect" title="Robert Lucas, Jr.">Robert Lucas</a> and the <a href="/wiki/New_classical_economics" class="mw-redirect" title="New classical economics">new classical</a> school.<sup id="cite_ref-76" class="reference"><a href="#cite_note-76"><span class="cite-bracket">[</span>76<span class="cite-bracket">]</span></a></sup> That school criticized the inconsistencies of Keynesianism in the light of the concept of "<a href="/wiki/Rational_expectations" title="Rational expectations">rational expectations</a>". The new classicals combined a unique <a href="/wiki/Market_clearing" title="Market clearing">market-clearing</a> equilibrium (at <a href="/wiki/Full_employment" title="Full employment">full employment</a>) with rational expectations. The New Keynesians used "microfoundations" to demonstrate that price stickiness hinders markets from clearing. Thus, the rational expectations-based equilibrium need not be unique. </p><p>Whereas the neoclassical synthesis hoped that <a href="/wiki/Fiscal_policy" title="Fiscal policy">fiscal</a> and <a href="/wiki/Monetary_policy" title="Monetary policy">monetary policy</a> would maintain <a href="/wiki/Full_employment" title="Full employment">full employment</a>, the <a href="/wiki/New_classical_economics" class="mw-redirect" title="New classical economics">new classicals</a> assumed that price and wage adjustment would automatically attain this situation in the short run. The new Keynesians, on the other hand, saw full employment as being automatically achieved only in the long run, since prices are "sticky" in the short run. Government and central-bank policies are needed because the "long run" may be very long. </p><p>Ultimately, the differences between new classical macroeconomics and New Keynesian economics were resolved in the <a href="/wiki/New_neoclassical_synthesis" title="New neoclassical synthesis">new neoclassical synthesis</a> of the 1990s, which forms the basis of <a href="/wiki/Mainstream_economics" title="Mainstream economics">mainstream economics</a> today,<sup id="cite_ref-columbia.edu_2-1" class="reference"><a href="#cite_note-columbia.edu-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-scholar.harvard.edu_3-1" class="reference"><a href="#cite_note-scholar.harvard.edu-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-richmondfed.org_4-1" class="reference"><a href="#cite_note-richmondfed.org-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup> and the Keynesian stress on the importance of centralized coordination of macroeconomic policies (e.g., monetary and fiscal stimulus), international economic institutions such as the <a href="/wiki/World_Bank" title="World Bank">World Bank</a> and <a href="/wiki/International_Monetary_Fund" title="International Monetary Fund">International Monetary Fund</a> (IMF), and of the maintenance of a controlled trading system was highlighted during the 2008 global financial and economic crisis. This has been reflected in the work of IMF economists<sup id="cite_ref-77" class="reference"><a href="#cite_note-77"><span class="cite-bracket">[</span>77<span class="cite-bracket">]</span></a></sup> and of <a href="/wiki/Donald_Markwell" title="Donald Markwell">Donald Markwell</a>.<sup id="cite_ref-78" class="reference"><a href="#cite_note-78"><span class="cite-bracket">[</span>78<span class="cite-bracket">]</span></a></sup> </p> <div class="mw-heading mw-heading2"><h2 id="Major_New_Keynesian_economists">Major New Keynesian economists</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=20" title="Edit section: Major New Keynesian economists"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236090951"><div role="note" class="hatnote navigation-not-searchable selfref">See also: <a href="/wiki/Category:New_Keynesian_economists" title="Category:New Keynesian economists">Category:New Keynesian economists</a></div> <ul><li><a href="/wiki/Jordi_Gal%C3%AD" title="Jordi Galí">Jordi Galí</a></li> <li><a href="/wiki/Mark_Gertler_(economist)" title="Mark Gertler (economist)">Mark Gertler</a></li> <li><a href="/wiki/Nobuhiro_Kiyotaki" title="Nobuhiro Kiyotaki">Nobuhiro Kiyotaki</a></li> <li><a href="/wiki/Michael_Woodford_(economist)" class="mw-redirect" title="Michael Woodford (economist)">Michael Woodford</a></li> <li><a href="/wiki/Greg_Mankiw" title="Greg Mankiw">Gregory Mankiw</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="See_also">See also</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=21" title="Edit section: See also"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><a href="/wiki/Calvo_(staggered)_contracts" title="Calvo (staggered) contracts">Calvo (staggered) contracts</a></li> <li><a href="/wiki/2008%E2%80%932009_Keynesian_resurgence" title="2008–2009 Keynesian resurgence">2008–2009 Keynesian resurgence</a></li> <li><a href="/wiki/New_neoclassical_synthesis" title="New neoclassical synthesis">New neoclassical synthesis</a></li> <li><a href="/wiki/Nominal_rigidity" title="Nominal rigidity">Sticky prices</a></li> <li><a href="/wiki/Welfare_cost_of_business_cycles" title="Welfare cost of business cycles">Welfare cost of business cycles</a></li> <li><a href="/wiki/Taylor_Contracts_(economics)" class="mw-redirect" title="Taylor Contracts (economics)">Taylor Contracts (economics)</a></li></ul> <div class="mw-heading mw-heading2"><h2 id="References">References</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=22" title="Edit section: References"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <style data-mw-deduplicate="TemplateStyles:r1239543626">.mw-parser-output .reflist{margin-bottom:0.5em;list-style-type:decimal}@media screen{.mw-parser-output .reflist{font-size:90%}}.mw-parser-output .reflist .references{font-size:100%;margin-bottom:0;list-style-type:inherit}.mw-parser-output .reflist-columns-2{column-width:30em}.mw-parser-output .reflist-columns-3{column-width:25em}.mw-parser-output .reflist-columns{margin-top:0.3em}.mw-parser-output .reflist-columns ol{margin-top:0}.mw-parser-output .reflist-columns li{page-break-inside:avoid;break-inside:avoid-column}.mw-parser-output .reflist-upper-alpha{list-style-type:upper-alpha}.mw-parser-output .reflist-upper-roman{list-style-type:upper-roman}.mw-parser-output .reflist-lower-alpha{list-style-type:lower-alpha}.mw-parser-output .reflist-lower-greek{list-style-type:lower-greek}.mw-parser-output .reflist-lower-roman{list-style-type:lower-roman}</style><div class="reflist reflist-columns references-column-width" style="column-width: 30em;"> <ol class="references"> <li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text"><style data-mw-deduplicate="TemplateStyles:r1238218222">.mw-parser-output cite.citation{font-style:inherit;word-wrap:break-word}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .citation:target{background-color:rgba(0,127,255,0.133)}.mw-parser-output .id-lock-free.id-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/6/65/Lock-green.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-limited.id-lock-limited a,.mw-parser-output .id-lock-registration.id-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/d/d6/Lock-gray-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .id-lock-subscription.id-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/a/aa/Lock-red-alt-2.svg")right 0.1em center/9px no-repeat}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/4/4c/Wikisource-logo.svg")right 0.1em center/12px no-repeat}body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-free a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-limited a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-registration a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .id-lock-subscription a,body:not(.skin-timeless):not(.skin-minerva) .mw-parser-output .cs1-ws-icon a{background-size:contain;padding:0 1em 0 0}.mw-parser-output .cs1-code{color:inherit;background:inherit;border:none;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;color:var(--color-error,#d33)}.mw-parser-output .cs1-visible-error{color:var(--color-error,#d33)}.mw-parser-output .cs1-maint{display:none;color:#085;margin-left:0.3em}.mw-parser-output .cs1-kern-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right{padding-right:0.2em}.mw-parser-output .citation .mw-selflink{font-weight:inherit}@media screen{.mw-parser-output .cs1-format{font-size:95%}html.skin-theme-clientpref-night .mw-parser-output .cs1-maint{color:#18911f}}@media screen and (prefers-color-scheme:dark){html.skin-theme-clientpref-os .mw-parser-output .cs1-maint{color:#18911f}}</style><cite id="CITEREFDixon" class="citation book cs1"><a href="/wiki/Huw_Dixon" title="Huw Dixon">Dixon, Huw</a>. <a rel="nofollow" class="external text" href="http://huwdixon.org/SurfingEconomics/chapter4.pdf">"Chapter 4: The role of imperfect competition in new Keynesian economics"</a> <span class="cs1-format">(PDF)</span>. <a rel="nofollow" class="external text" href="http://huwdixon.org/SurfingEconomics/index.html"><i>Surfing Economics</i></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=Chapter+4%3A+The+role+of+imperfect+competition+in+new+Keynesian+economics&rft.btitle=Surfing+Economics&rft.aulast=Dixon&rft.aufirst=Huw&rft_id=http%3A%2F%2Fhuwdixon.org%2FSurfingEconomics%2Fchapter4.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></span> </li> <li id="cite_note-columbia.edu-2"><span class="mw-cite-backlink">^ <a href="#cite_ref-columbia.edu_2-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-columbia.edu_2-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text">Woodford, Michael. <a rel="nofollow" class="external text" href="http://www.columbia.edu/~mw2230/Convergence_AEJ.pdf"><i>Convergence in Macroeconomics: Elements of the New Synthesis</i></a>. 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Center for Financial Studies, Goethe University, Frankfurt.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=CFS+Working+Paper+2007%2F08&rft.atitle=A+New+Keynesian+model+with+unemployment&rft.date=2007&rft.aulast=Blanchard&rft.aufirst=Olivier&rft.au=Gal%C3%AD%2C+Jordi&rft_id=http%3A%2F%2Fwww.ifk-cfs.de%2Ffileadmin%2Fdownloads%2Fpublications%2Fwp%2F07_08.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></span> </li> <li id="cite_note-73"><span class="mw-cite-backlink"><b><a href="#cite_ref-73">^</a></b></span> <span class="reference-text">Federal Reserve Bank of Minneapolis (July 2008). <a rel="nofollow" class="external text" href="http://www.minneapolisfed.org/research/wp/wp664.pdf">"New Keynesian Models: Not Yet Useful for Policy Analysis"</a>.</span> </li> <li id="cite_note-74"><span class="mw-cite-backlink"><b><a href="#cite_ref-74">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFAlves2014" class="citation journal cs1">Alves, S. A. L. (2014). "Lack of Divine Coincidence in New-Keynesian Models". <i>Journal of Monetary Economics</i>. <b>67</b> (67): 33–46. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1016%2Fj.jmoneco.2014.07.002">10.1016/j.jmoneco.2014.07.002</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Monetary+Economics&rft.atitle=Lack+of+Divine+Coincidence+in+New-Keynesian+Models&rft.volume=67&rft.issue=67&rft.pages=33-46&rft.date=2014&rft_id=info%3Adoi%2F10.1016%2Fj.jmoneco.2014.07.002&rft.aulast=Alves&rft.aufirst=S.+A.+L.&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></span> </li> <li id="cite_note-75"><span class="mw-cite-backlink"><b><a href="#cite_ref-75">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFWoodford1999" class="citation journal cs1">Woodford, Michael (1999). <a rel="nofollow" class="external text" href="http://www.columbia.edu/%7Emw2230/macro20C.pdf">"Revolution and evolution in 20th century macroeconomics"</a> <span class="cs1-format">(PDF)</span>. <i>Mimeo</i>. Columbia University.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Mimeo&rft.atitle=Revolution+and+evolution+in+20th+century+macroeconomics&rft.date=1999&rft.aulast=Woodford&rft.aufirst=Michael&rft_id=http%3A%2F%2Fwww.columbia.edu%2F%257Emw2230%2Fmacro20C.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></span> </li> <li id="cite_note-76"><span class="mw-cite-backlink"><b><a href="#cite_ref-76">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFGali2015" class="citation book cs1">Gali, Jordi (2015). <i>Monetary Policy, Inflation and the Business Cycle: An Introduction to the New Keynesian Framework and Its Applications</i> (2nd ed.). Princeton and Oxford: Princeton University Press. pp. 5–6. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0-691-16478-6" title="Special:BookSources/978-0-691-16478-6"><bdi>978-0-691-16478-6</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Monetary+Policy%2C+Inflation+and+the+Business+Cycle%3A+An+Introduction+to+the+New+Keynesian+Framework+and+Its+Applications&rft.place=Princeton+and+Oxford&rft.pages=5-6&rft.edition=2nd&rft.pub=Princeton+University+Press&rft.date=2015&rft.isbn=978-0-691-16478-6&rft.aulast=Gali&rft.aufirst=Jordi&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></span> </li> <li id="cite_note-77"><span class="mw-cite-backlink"><b><a href="#cite_ref-77">^</a></b></span> <span class="reference-text">Antonio Spilimbergo, Steve Symansky, Olivier Blanchard, and Carlo Cottarelli (29 December 2008). <a rel="nofollow" class="external text" href="https://blogs.wsj.com/economics/2008/12/29/imf-what-kind-of-stimulus-will-work/">"Fiscal Policy for the Crisis"</a>. IMF Fiscal Affairs and Research Departments.</span> </li> <li id="cite_note-78"><span class="mw-cite-backlink"><b><a href="#cite_ref-78">^</a></b></span> <span class="reference-text"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFMarkwell2006" class="citation book cs1"><a href="/wiki/Donald_Markwell" title="Donald Markwell">Markwell, Donald</a> (2006). <i>John Maynard Keynes and International Relations: Economic Paths to War and Peace</i>. Oxford University Press.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=John+Maynard+Keynes+and+International+Relations%3A+Economic+Paths+to+War+and+Peace&rft.pub=Oxford+University+Press&rft.date=2006&rft.aulast=Markwell&rft.aufirst=Donald&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></span> </li> </ol></div> <div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2><span class="mw-editsection"><span class="mw-editsection-bracket">[</span><a href="/w/index.php?title=New_Keynesian_economics&action=edit&section=23" title="Edit section: Further reading"><span>edit</span></a><span class="mw-editsection-bracket">]</span></span></div> <ul><li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFClaridaGalíGertler1999" class="citation journal cs1">Clarida, Richard; Galí, Jordi; Gertler, Mark (1999). "The Science of Monetary Policy: A New Keynesian Perspective". <i><a href="/wiki/Journal_of_Economic_Literature" title="Journal of Economic Literature">Journal of Economic Literature</a></i>. <b>37</b> (4): 1661–1707. <a href="/wiki/CiteSeerX_(identifier)" class="mw-redirect" title="CiteSeerX (identifier)">CiteSeerX</a> <span class="id-lock-free" title="Freely accessible"><a rel="nofollow" class="external text" href="https://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.199.3912">10.1.1.199.3912</a></span>. <a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1257%2Fjel.37.4.1661">10.1257/jel.37.4.1661</a>. <a href="/wiki/JSTOR_(identifier)" class="mw-redirect" title="JSTOR (identifier)">JSTOR</a> <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/2565488">2565488</a>. <a href="/wiki/S2CID_(identifier)" class="mw-redirect" title="S2CID (identifier)">S2CID</a> <a rel="nofollow" class="external text" href="https://api.semanticscholar.org/CorpusID:55045787">55045787</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Economic+Literature&rft.atitle=The+Science+of+Monetary+Policy%3A+A+New+Keynesian+Perspective&rft.volume=37&rft.issue=4&rft.pages=1661-1707&rft.date=1999&rft_id=https%3A%2F%2Fciteseerx.ist.psu.edu%2Fviewdoc%2Fsummary%3Fdoi%3D10.1.1.199.3912%23id-name%3DCiteSeerX&rft_id=https%3A%2F%2Fapi.semanticscholar.org%2FCorpusID%3A55045787%23id-name%3DS2CID&rft_id=https%3A%2F%2Fwww.jstor.org%2Fstable%2F2565488%23id-name%3DJSTOR&rft_id=info%3Adoi%2F10.1257%2Fjel.37.4.1661&rft.aulast=Clarida&rft.aufirst=Richard&rft.au=Gal%C3%AD%2C+Jordi&rft.au=Gertler%2C+Mark&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></li> <li><a href="/wiki/Robert_J._Gordon" title="Robert J. Gordon">Robert J. Gordon</a> Gordon, Robert (1990), What is New-Keynesian Economics?, <i>Journal of Economic Literature</i>.</li> <li><a href="/wiki/Huw_Dixon" title="Huw Dixon">Dixon, Huw</a> (2008), New Keynesian Economics, New Palgrave Dictionary of Economics New Keynesian macroeconomics. <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><a href="/wiki/Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1057%2F9780230226203.1184">10.1057/9780230226203.1184</a>.</li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFMankiw2008" class="citation encyclopaedia cs1"><a href="/wiki/Greg_Mankiw" title="Greg Mankiw">Mankiw, N. Gregory</a> (2008). <a rel="nofollow" class="external text" href="http://www.econlib.org/library/Enc/NewKeynesianEconomics.html">"New Keynesian Economics"</a>. In <a href="/wiki/David_R._Henderson" title="David R. Henderson">David R. Henderson</a> (ed.). <i><a href="/wiki/Concise_Encyclopedia_of_Economics" class="mw-redirect" title="Concise Encyclopedia of Economics">Concise Encyclopedia of Economics</a></i> (2nd ed.). Indianapolis: <a href="/wiki/Library_of_Economics_and_Liberty" class="mw-redirect" title="Library of Economics and Liberty">Library of Economics and Liberty</a>. <a href="/wiki/ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <a href="/wiki/Special:BookSources/978-0865976658" title="Special:BookSources/978-0865976658"><bdi>978-0865976658</bdi></a>. <a href="/wiki/OCLC_(identifier)" class="mw-redirect" title="OCLC (identifier)">OCLC</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/oclc/237794267">237794267</a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=bookitem&rft.atitle=New+Keynesian+Economics&rft.btitle=Concise+Encyclopedia+of+Economics&rft.place=Indianapolis&rft.edition=2nd&rft.pub=Library+of+Economics+and+Liberty&rft.date=2008&rft_id=info%3Aoclcnum%2F237794267&rft.isbn=978-0865976658&rft.aulast=Mankiw&rft.aufirst=N.+Gregory&rft_id=http%3A%2F%2Fwww.econlib.org%2Flibrary%2FEnc%2FNewKeynesianEconomics.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></li> <li><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1238218222"><cite id="CITEREFRowe" class="citation web cs1">Rowe, Nick. <a rel="nofollow" class="external text" href="http://worthwhile.typepad.com/worthwhile_canadian_initi/2014/07/the-growth-stages-of-the-new-keynesian-model.html">"The Growth Stages of the New Keynesian Model"</a>. <i>Worthwhile Canadian Initiative</i><span class="reference-accessdate">. Retrieved <span class="nowrap">24 July</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Worthwhile+Canadian+Initiative&rft.atitle=The+Growth+Stages+of+the+New+Keynesian+Model&rft.aulast=Rowe&rft.aufirst=Nick&rft_id=http%3A%2F%2Fworthwhile.typepad.com%2Fworthwhile_canadian_initi%2F2014%2F07%2Fthe-growth-stages-of-the-new-keynesian-model.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3ANew+Keynesian+economics" class="Z3988"></span></li></ul> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><style data-mw-deduplicate="TemplateStyles:r1236075235">.mw-parser-output .navbox{box-sizing:border-box;border:1px solid #a2a9b1;width:100%;clear:both;font-size:88%;text-align:center;padding:1px;margin:1em auto 0}.mw-parser-output .navbox .navbox{margin-top:0}.mw-parser-output .navbox+.navbox,.mw-parser-output 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href="/wiki/Cultural_economics" title="Cultural economics">Cultural</a></li> <li><a href="/wiki/Democracy_and_economic_growth" title="Democracy and economic growth">Democracy</a></li> <li><a href="/wiki/Demographic_economics" title="Demographic economics">Demographic</a></li> <li><a href="/wiki/Development_economics" title="Development economics">Development</a></li> <li><a href="/wiki/Economics_of_digitization" title="Economics of digitization">Digitization</a></li> <li><a href="/wiki/Ecological_economics" title="Ecological economics">Ecological</a></li> <li><a href="/wiki/Education_economics" title="Education economics">Education</a></li> <li><a href="/wiki/Engineering_economics" title="Engineering economics">Engineering</a></li> <li><a href="/wiki/Environmental_economics" title="Environmental economics">Environmental</a></li> <li><a href="/wiki/Evolutionary_economics" title="Evolutionary economics">Evolutionary</a></li> <li><a href="/wiki/Expeditionary_economics" title="Expeditionary economics">Expeditionary</a></li> <li><a href="/wiki/Feminist_economics" title="Feminist economics">Feminist</a></li> <li><a href="/wiki/Financial_economics" title="Financial economics">Financial</a></li> <li><a href="/wiki/Economic_geography" title="Economic geography">Geographical</a></li> <li><a href="/wiki/Happiness_economics" title="Happiness economics">Happiness</a></li> <li><a href="/wiki/Health_economics" title="Health economics">Health</a></li> <li><a href="/wiki/Economic_history" title="Economic history">Historical</a></li> <li><a href="/wiki/Humanistic_economics" title="Humanistic economics">Humanistic</a></li> <li><a href="/wiki/Industrial_organization" title="Industrial organization">Industrial organization</a></li> <li><a href="/wiki/Information_economics" title="Information economics">Information</a></li> <li><a href="/wiki/Institutional_economics" title="Institutional economics">Institutional</a></li> <li><a href="/wiki/Knowledge_economy" title="Knowledge economy">Knowledge</a></li> <li><a href="/wiki/Labour_economics" title="Labour economics">Labour</a></li> <li><a href="/wiki/Law_and_economics" title="Law and economics">Law</a></li> <li><a href="/wiki/Managerial_economics" title="Managerial economics">Managerial</a></li> <li><a href="/wiki/Monetary_economics" title="Monetary economics">Monetary</a></li> <li><a href="/wiki/Natural_resource_economics" title="Natural resource economics">Natural resource</a></li> <li><a href="/wiki/Organizational_economics" title="Organizational economics">Organizational</a></li> <li><a href="/wiki/Economics_of_participation" title="Economics of participation">Participation</a></li> <li><a href="/wiki/Personnel_economics" title="Personnel economics">Personnel</a></li> <li><a href="/wiki/Economic_planning" title="Economic planning">Planning</a></li> <li><a href="/wiki/Economic_policy" title="Economic policy">Policy</a></li> <li><a href="/wiki/Public_economics" title="Public economics">Public</a></li> <li><a href="/wiki/Public_choice" title="Public choice">Public choice</a> / <a href="/wiki/Social_choice_theory" title="Social choice theory">Social choice theory</a></li> <li><a href="/wiki/Regional_economics" title="Regional economics">Regional</a></li> <li><a href="/wiki/Rural_economics" title="Rural economics">Rural</a></li> <li><a href="/wiki/Service_economy" title="Service economy">Service</a></li> <li><a href="/wiki/Socioeconomics" class="mw-redirect" title="Socioeconomics">Socio</a></li> <li><a href="/wiki/Economic_sociology" title="Economic sociology">Sociological</a></li> <li><a href="/wiki/Solidarity_economy" title="Solidarity economy">Solidarity</a></li> <li><a href="/wiki/Economic_statistics" title="Economic statistics">Statistics</a></li> <li><a href="/wiki/Urban_economics" title="Urban economics">Urban</a></li> <li><a href="/wiki/Welfare_economics" title="Welfare economics">Welfare</a></li></ul></div></div> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><div style="display: inline-block; line-height: 1.2em; padding: .1em 0;"><a href="/wiki/Schools_of_economic_thought" title="Schools of economic thought">Schools</a><br />(<a href="/wiki/History_of_economic_thought" title="History of economic thought">history</a>)<br /></div></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Mainstream_economics" title="Mainstream economics">Mainstream</a></li> <li><a href="/wiki/Heterodox_economics" title="Heterodox economics">Heterodox</a></li> <li><a href="/wiki/American_School_(economics)" title="American School (economics)">American (National)</a></li> <li><a href="/wiki/Ancient_economic_thought" title="Ancient economic thought">Ancient thought</a></li> <li><a href="/wiki/Anarchist_economics" class="mw-redirect" title="Anarchist economics">Anarchist</a> <ul><li><a href="/wiki/Mutualism_(economic_theory)" title="Mutualism (economic theory)">Mutualism</a></li></ul></li> <li><a href="/wiki/Austrian_School" class="mw-redirect" title="Austrian School">Austrian</a></li> <li><a href="/wiki/Behavioral_economics" title="Behavioral economics">Behavioral</a></li> <li><a href="/wiki/Buddhist_economics" title="Buddhist economics">Buddhist</a></li> <li><a href="/wiki/Chartalism" title="Chartalism">Chartalism</a> <ul><li><a href="/wiki/Modern_monetary_theory" title="Modern monetary theory">Modern monetary theory</a></li></ul></li> <li><a href="/wiki/Chicago_school_of_economics" title="Chicago school of economics">Chicago</a></li> <li><a href="/wiki/Classical_economics" title="Classical economics">Classical</a></li> <li><a href="/wiki/Critique_of_political_economy" title="Critique of political economy">Critique of political economy</a></li> <li><a href="/wiki/Economic_democracy" title="Economic democracy">Democratic</a></li> <li><a href="/wiki/Disequilibrium_macroeconomics" title="Disequilibrium macroeconomics">Disequilibrium</a></li> <li><a href="/wiki/Ecological_economics" title="Ecological economics">Ecological</a></li> <li><a href="/wiki/Evolutionary_economics" title="Evolutionary economics">Evolutionary</a></li> <li><a href="/wiki/Feminist_economics" title="Feminist economics">Feminist</a></li> <li><a href="/wiki/Georgism" title="Georgism">Georgism</a></li> <li><a href="/wiki/Happiness_economics" title="Happiness economics">Happiness</a></li> <li><a href="/wiki/Historical_school_of_economics" title="Historical school of economics">Historical</a></li> <li><a href="/wiki/Humanistic_economics" title="Humanistic economics">Humanistic</a></li> <li><a href="/wiki/Institutional_economics" title="Institutional economics">Institutional</a></li> <li><a href="/wiki/Keynesian_economics" title="Keynesian economics">Keynesian</a> <ul><li><a href="/wiki/Neo-Keynesian_economics" class="mw-redirect" title="Neo-Keynesian economics">Neo-</a> (<a href="/wiki/Neoclassical_synthesis" title="Neoclassical synthesis">neoclassical–Keynesian synthesis</a>)</li> <li><a class="mw-selflink selflink">New</a></li> <li><a href="/wiki/Post-Keynesian_economics" title="Post-Keynesian economics">Post-</a> <ul><li><a href="/wiki/Monetary_circuit_theory" title="Monetary circuit theory">Circuitism</a></li></ul></li></ul></li> <li><a href="/wiki/Malthusianism" title="Malthusianism">Malthusianism</a></li> <li><a href="/wiki/Marginalism" title="Marginalism">Marginalism</a></li> <li><a href="/wiki/Marxian_economics" title="Marxian economics">Marxian</a> <ul><li><a href="/wiki/Neo-Marxian_economics" class="mw-redirect" title="Neo-Marxian economics">Neo-</a></li></ul></li> <li><a href="/wiki/Mercantilism" title="Mercantilism">Mercantilism</a></li> <li><a href="/wiki/Mixed_economy" title="Mixed economy">Mixed</a></li> <li><a href="/wiki/Neoclassical_economics" title="Neoclassical economics">Neoclassical</a> <ul><li><a href="/wiki/Lausanne_School" title="Lausanne School">Lausanne</a></li></ul></li> <li><a href="/wiki/New_classical_macroeconomics" title="New classical macroeconomics">New classical</a> <ul><li><a href="/wiki/Real_business-cycle_theory" title="Real business-cycle theory">Real business-cycle theory</a></li></ul></li> <li><a href="/wiki/New_institutional_economics" title="New institutional economics">New institutional</a></li> <li><a href="/wiki/Physiocracy" title="Physiocracy">Physiocracy</a></li> <li><a href="/wiki/Socialist_economics" title="Socialist economics">Socialist</a></li> <li><a href="/wiki/Stockholm_School_(economics)" title="Stockholm School (economics)">Stockholm</a></li> <li><a href="/wiki/Supply-side_economics" title="Supply-side economics">Supply-side</a></li> <li><a href="/wiki/Thermoeconomics" title="Thermoeconomics">Thermo</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><div style="display: inline-block; line-height: 1.2em; padding: .1em 0;"><a href="/wiki/Economist" title="Economist">Economists</a><br /></div></th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Bernard_de_Mandeville" class="mw-redirect" title="Bernard de Mandeville">de Mandeville</a></li> <li><a href="/wiki/Fran%C3%A7ois_Quesnay" title="François Quesnay">Quesnay</a></li> <li><a href="/wiki/Adam_Smith" title="Adam Smith">Smith</a></li> <li><a href="/wiki/Thomas_Robert_Malthus" title="Thomas Robert Malthus">Malthus</a></li> <li><a href="/wiki/Jean-Baptiste_Say" title="Jean-Baptiste Say">Say</a></li> <li><a href="/wiki/David_Ricardo" title="David Ricardo">Ricardo</a></li> <li><a href="/wiki/Johann_Heinrich_von_Th%C3%BCnen" title="Johann Heinrich von Thünen">von Thünen</a></li> <li><a href="/wiki/Friedrich_List" title="Friedrich List">List</a></li> <li><a href="/wiki/Fr%C3%A9d%C3%A9ric_Bastiat" title="Frédéric Bastiat">Bastiat</a></li> <li><a href="/wiki/Antoine_Augustin_Cournot" title="Antoine Augustin Cournot">Cournot</a></li> <li><a href="/wiki/John_Stuart_Mill" title="John Stuart Mill">Mill</a></li> <li><a href="/wiki/Hermann_Heinrich_Gossen" title="Hermann Heinrich Gossen">Gossen</a></li> <li><a href="/wiki/Karl_Marx" title="Karl Marx">Marx</a></li> <li><a href="/wiki/L%C3%A9on_Walras" title="Léon Walras">Walras</a></li> <li><a href="/wiki/William_Stanley_Jevons" title="William Stanley Jevons">Jevons</a></li> <li><a href="/wiki/Henry_George" title="Henry George">George</a></li> <li><a href="/wiki/Carl_Menger" title="Carl Menger">Menger</a></li> <li><a href="/wiki/Alfred_Marshall" title="Alfred Marshall">Marshall</a></li> <li><a href="/wiki/Francis_Ysidro_Edgeworth" title="Francis Ysidro Edgeworth">Edgeworth</a></li> <li><a href="/wiki/John_Bates_Clark" title="John Bates Clark">Clark</a></li> <li><a href="/wiki/Vilfredo_Pareto" title="Vilfredo Pareto">Pareto</a></li> <li><a href="/wiki/Eugen_von_B%C3%B6hm-Bawerk" title="Eugen von Böhm-Bawerk">von Böhm-Bawerk</a></li> <li><a href="/wiki/Friedrich_von_Wieser" title="Friedrich von Wieser">von Wieser</a></li> <li><a href="/wiki/Thorstein_Veblen" title="Thorstein Veblen">Veblen</a></li> <li><a href="/wiki/Irving_Fisher" title="Irving Fisher">Fisher</a></li> <li><a href="/wiki/Arthur_Cecil_Pigou" title="Arthur Cecil Pigou">Pigou</a></li> <li><a href="/wiki/Eli_Heckscher" title="Eli Heckscher">Heckscher</a></li> <li><a href="/wiki/Ludwig_von_Mises" title="Ludwig von Mises">von Mises</a></li> <li><a href="/wiki/Joseph_Schumpeter" title="Joseph Schumpeter">Schumpeter</a></li> <li><a href="/wiki/John_Maynard_Keynes" title="John Maynard Keynes">Keynes</a></li> <li><a href="/wiki/Frank_Knight" title="Frank Knight">Knight</a></li> <li><a href="/wiki/Karl_Polanyi" title="Karl Polanyi">Polanyi</a></li> <li><a href="/wiki/Ragnar_Frisch" title="Ragnar Frisch">Frisch</a></li> <li><a href="/wiki/Piero_Sraffa" title="Piero Sraffa">Sraffa</a></li> <li><a href="/wiki/Gunnar_Myrdal" title="Gunnar Myrdal">Myrdal</a></li> <li><a href="/wiki/Friedrich_Hayek" title="Friedrich Hayek">Hayek</a></li> <li><a href="/wiki/Micha%C5%82_Kalecki" title="Michał Kalecki">Kalecki</a></li> <li><a href="/wiki/Wilhelm_R%C3%B6pke" title="Wilhelm Röpke">Röpke</a></li> <li><a href="/wiki/Simon_Kuznets" title="Simon Kuznets">Kuznets</a></li> <li><a href="/wiki/Jan_Tinbergen" title="Jan Tinbergen">Tinbergen</a></li> <li><a href="/wiki/Joan_Robinson" title="Joan Robinson">Robinson</a></li> <li><a href="/wiki/John_von_Neumann" title="John von Neumann">von Neumann</a></li> <li><a href="/wiki/John_Hicks" title="John Hicks">Hicks</a></li> <li><a href="/wiki/Oskar_R._Lange" title="Oskar R. Lange">Lange</a></li> <li><a href="/wiki/Wassily_Leontief" title="Wassily Leontief">Leontief</a></li> <li><a href="/wiki/John_Kenneth_Galbraith" title="John Kenneth Galbraith">Galbraith</a></li> <li><a href="/wiki/Tjalling_Koopmans" title="Tjalling Koopmans">Koopmans</a></li> <li><a href="/wiki/E._F._Schumacher" title="E. F. Schumacher">Schumacher</a></li> <li><a href="/wiki/Milton_Friedman" title="Milton Friedman">Friedman</a></li> <li><a href="/wiki/Paul_Samuelson" title="Paul Samuelson">Samuelson</a></li> <li><a href="/wiki/Herbert_A._Simon" title="Herbert A. Simon">Simon</a></li> <li><a href="/wiki/James_M._Buchanan" title="James M. Buchanan">Buchanan</a></li> <li><a href="/wiki/Kenneth_Arrow" title="Kenneth Arrow">Arrow</a></li> <li><a href="/wiki/William_Baumol" title="William Baumol">Baumol</a></li> <li><a href="/wiki/Robert_Solow" title="Robert Solow">Solow</a></li> <li><a href="/wiki/Murray_Rothbard" title="Murray Rothbard">Rothbard</a></li> <li><a href="/wiki/Alan_Greenspan" title="Alan Greenspan">Greenspan</a></li> <li><a href="/wiki/Thomas_Sowell" title="Thomas Sowell">Sowell</a></li> <li><a href="/wiki/Gary_Becker" title="Gary Becker">Becker</a></li> <li><a href="/wiki/Elinor_Ostrom" title="Elinor Ostrom">Ostrom</a></li> <li><a href="/wiki/Amartya_Sen" title="Amartya Sen">Sen</a></li> <li><a href="/wiki/Robert_Lucas_Jr." title="Robert Lucas Jr.">Lucas</a></li> <li><a href="/wiki/Joseph_Stiglitz" title="Joseph Stiglitz">Stiglitz</a></li> <li><a href="/wiki/Richard_Thaler" title="Richard Thaler">Thaler</a></li> <li><a href="/wiki/Hans-Hermann_Hoppe" title="Hans-Hermann Hoppe">Hoppe</a></li> <li><a href="/wiki/Paul_Krugman" title="Paul Krugman">Krugman</a></li> <li><a href="/wiki/Thomas_Piketty" title="Thomas Piketty">Piketty</a></li> <li><i><a href="/wiki/Category:Economists" title="Category:Economists">more</a></i></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Category:Economics_lists" title="Category:Economics lists">Lists</a></th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <ul><li><a href="/wiki/Glossary_of_economics" title="Glossary of economics">Glossary</a></li> <li><a href="/wiki/List_of_economists" title="List of economists">Economists</a></li> <li><a href="/wiki/List_of_important_publications_in_economics" title="List of important publications in economics">Publications</a> (<a href="/wiki/List_of_economics_journals" title="List of economics journals">journals</a>)</li> <li><a href="/wiki/Schools_of_economic_thought" title="Schools of economic thought">Schools</a></li></ul></div></div></div></td></tr><tr><td class="navbox-abovebelow" colspan="2"><div> <li><a href="/wiki/Category:Economics" title="Category:Economics">Category</a></li> <li><a href="/wiki/Index_of_economics_articles" title="Index of economics articles">Index</a></li> <li><a href="/wiki/Category:Economics_lists" title="Category:Economics lists">Lists</a></li> <li><a href="/wiki/Outline_of_economics" title="Outline of economics">Outline</a></li> <li><a href="/wiki/List_of_important_publications_in_economics" title="List of important publications in economics">Publications</a></li> <li><a href="/wiki/Portal:Business" title="Portal:Business">Business portal</a></li> </div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1066933788"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1066933788"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1066933788"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1066933788"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1066933788"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1066933788"></div><div role="navigation" class="navbox" aria-labelledby="Macroeconomics" style="padding:3px"><table class="nowraplinks mw-collapsible mw-collapsed navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Macroeconomics" title="Template:Macroeconomics"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Macroeconomics" title="Template talk:Macroeconomics"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Macroeconomics" title="Special:EditPage/Template:Macroeconomics"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Macroeconomics" style="font-size:114%;margin:0 4em"><a href="/wiki/Macroeconomics" title="Macroeconomics">Macroeconomics</a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">Basic concepts</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <ul><li><a href="/wiki/Aggregate_demand" title="Aggregate demand">Aggregate demand</a></li> <li><a href="/wiki/Aggregate_supply" title="Aggregate supply">Aggregate supply</a></li> <li><a href="/wiki/Business_cycle" title="Business cycle">Business cycle</a></li> <li><a href="/wiki/Compound_annual_growth_rate" title="Compound annual growth rate">CAGR</a></li> <li><a href="/wiki/Deflation" title="Deflation">Deflation</a></li> <li><a href="/wiki/Demand_shock" title="Demand shock">Demand shock</a></li> <li><a href="/wiki/Disinflation" title="Disinflation">Disinflation</a></li> <li><a href="/wiki/Effective_demand" title="Effective demand">Effective demand</a></li> <li>Expectations <ul><li><a href="/wiki/Adaptive_expectations" title="Adaptive expectations">Adaptive</a></li> <li><a href="/wiki/Rational_expectations" title="Rational expectations">Rational</a></li></ul></li> <li><a href="/wiki/Financial_crisis" title="Financial crisis">Financial crisis</a></li> <li><a href="/wiki/Economic_growth" title="Economic growth">Growth</a></li> <li><a href="/wiki/Inflation" title="Inflation">Inflation</a> <ul><li><a href="/wiki/Demand-pull_inflation" title="Demand-pull inflation">Demand-pull</a></li> <li><a href="/wiki/Cost-push_inflation" title="Cost-push inflation">Cost-push</a></li></ul></li> <li><a href="/wiki/Interest_rate" title="Interest rate">Interest rate</a></li> <li><a href="/wiki/Investment_(macroeconomics)" title="Investment (macroeconomics)">Investment</a></li> <li><a href="/wiki/Liquidity_trap" title="Liquidity trap">Liquidity trap</a></li> <li><a href="/wiki/Measures_of_national_income_and_output" title="Measures of national income and output">Measures of national income and output</a> <ul><li><a href="/wiki/Gross_domestic_product" title="Gross domestic product">GDP</a></li> <li><a href="/wiki/Gross_national_income" title="Gross national income">GNI</a></li> <li><a href="/wiki/Net_national_income" title="Net national income">NNI</a></li></ul></li> <li><a href="/wiki/Microfoundations" title="Microfoundations">Microfoundations</a></li> <li><a href="/wiki/Money" title="Money">Money</a> <ul><li><a href="/wiki/Endogenous_money" title="Endogenous money">Endogenous</a></li></ul></li> <li><a href="/wiki/Money_creation" title="Money creation">Money creation</a></li> <li><a href="/wiki/Demand_for_money" title="Demand for money">Demand for money</a> <ul><li><a href="/wiki/Liquidity_preference" title="Liquidity preference">Liquidity preference</a></li></ul></li> <li><a href="/wiki/Money_supply" title="Money supply">Money supply</a></li> <li><a href="/wiki/National_accounts" title="National accounts">National accounts</a> <ul><li><a href="/wiki/System_of_National_Accounts" title="System of National Accounts">SNA</a></li></ul></li> <li><a href="/wiki/Nominal_rigidity" title="Nominal rigidity">Nominal rigidity</a></li> <li><a href="/wiki/Price_level" title="Price level">Price level</a></li> <li><a href="/wiki/Recession" title="Recession">Recession</a></li> <li><a href="/wiki/Shrinkflation" title="Shrinkflation">Shrinkflation</a></li> <li><a href="/wiki/Stagflation" title="Stagflation">Stagflation</a></li> <li><a href="/wiki/Supply_shock" title="Supply shock">Supply shock</a></li> <li><a href="/wiki/National_saving" title="National saving">Saving</a></li> <li><a href="/wiki/Unemployment" title="Unemployment">Unemployment</a></li></ul></div></div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Policies</th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <li><a href="/wiki/Fiscal_policy" title="Fiscal policy">Fiscal</a></li> <li><a href="/wiki/Monetary_policy" title="Monetary policy">Monetary</a></li> <li><a href="/wiki/Commercial_policy" title="Commercial policy">Commercial</a></li> <li><a href="/wiki/Central_bank" title="Central bank">Central bank</a></li> <li><a href="/wiki/Universal_basic_income" title="Universal basic income">Universal basic income</a></li></div></div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Models</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <li><a href="/wiki/IS%E2%80%93LM_model" title="IS–LM model">IS–LM</a></li> <li><a href="/wiki/AD%E2%80%93AS_model" title="AD–AS model">AD–AS</a></li> <li><a href="/wiki/Keynesian_cross" title="Keynesian cross">Keynesian cross</a></li> <li><a href="/wiki/Multiplier_(economics)" title="Multiplier (economics)">Multiplier</a></li> <li><a href="/wiki/Accelerator_effect" title="Accelerator effect">Accelerator</a></li> <li><a href="/wiki/Phillips_curve" title="Phillips curve">Phillips curve</a></li> <li><a href="/wiki/Arrow%E2%80%93Debreu_model" title="Arrow–Debreu model">Arrow–Debreu</a></li> <li><a href="/wiki/Harrod%E2%80%93Domar_model" title="Harrod–Domar model">Harrod–Domar</a>Нмиф</li> <li><a href="/wiki/Solow%E2%80%93Swan_model" title="Solow–Swan model">Solow–Swan</a></li> <li><a href="/wiki/Ramsey%E2%80%93Cass%E2%80%93Koopmans_model" title="Ramsey–Cass–Koopmans model">Ramsey–Cass–Koopmans</a></li> <li><a href="/wiki/Overlapping_generations_model" title="Overlapping generations model">Overlapping generations</a></li> <li><a href="/wiki/General_equilibrium_theory" title="General equilibrium theory">General equilibrium</a> <ul><li><a href="/wiki/Dynamic_stochastic_general_equilibrium" title="Dynamic stochastic general equilibrium">DSGE</a></li></ul></li> <li><a href="/wiki/Endogenous_growth_theory" title="Endogenous growth theory">Endogenous growth</a></li> <li><a href="/wiki/Matching_theory_(economics)" class="mw-redirect" title="Matching theory (economics)">Matching theory</a></li> <li><a href="/wiki/Mundell%E2%80%93Fleming_model" title="Mundell–Fleming model">Mundell–Fleming</a></li> <li><a href="/wiki/Overshooting_model" title="Overshooting model">Overshooting</a></li> <li><a href="/wiki/NAIRU" title="NAIRU">NAIRU</a></li></div></div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Related fields</th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <li><a href="/wiki/Econometrics" title="Econometrics">Econometrics</a></li> <li><a href="/wiki/Economic_statistics" title="Economic statistics">Economic statistics</a></li> <li><a href="/wiki/Monetary_economics" title="Monetary economics">Monetary economics</a></li> <li><a href="/wiki/Development_economics" title="Development economics">Development economics</a></li> <li><a href="/wiki/International_economics" title="International economics">International economics</a></li></div></div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/History_of_macroeconomic_thought" title="History of macroeconomic thought">Schools</a></th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"></div><table class="nowraplinks navbox-subgroup" style="border-spacing:0"><tbody><tr><th scope="row" class="navbox-group" style="width:1%">Mainstream</th><td class="navbox-list-with-group navbox-list navbox-odd" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <li><a href="/wiki/Keynesian_economics" title="Keynesian economics">Keynesian</a> <ul><li><a href="/wiki/Neo-Keynesian_economics" class="mw-redirect" title="Neo-Keynesian economics">Neo-</a></li> <li>New</li></ul></li> <li><a href="/wiki/Monetarism" title="Monetarism">Monetarism</a></li> <li><a href="/wiki/New_classical_macroeconomics" title="New classical macroeconomics">New classical</a> <ul><li><a href="/wiki/Real_business-cycle_theory" title="Real business-cycle theory">Real business-cycle theory</a></li></ul></li> <li><a href="/wiki/Stockholm_school_(economics)" class="mw-redirect" title="Stockholm school (economics)">Stockholm</a></li> <li><a href="/wiki/Supply-side_economics" title="Supply-side economics">Supply-side</a></li> <li><a href="/wiki/New_neoclassical_synthesis" title="New neoclassical synthesis">New neoclassical synthesis</a></li> <li><a href="/wiki/Saltwater_and_freshwater_economics" title="Saltwater and freshwater economics">Saltwater and freshwater</a></li></div></div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Heterodox</th><td class="navbox-list-with-group navbox-list navbox-even" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <li><a href="/wiki/Austrian_School" class="mw-redirect" title="Austrian School">Austrian</a></li> <li><a href="/wiki/Chartalism" title="Chartalism">Chartalism</a> <ul><li><a href="/wiki/Modern_monetary_theory" title="Modern monetary theory">Modern monetary theory</a></li></ul></li> <li><a href="/wiki/Ecological_economics" title="Ecological economics">Ecological</a></li> <li><a href="/wiki/Post-Keynesian_economics" title="Post-Keynesian economics">Post-Keynesian</a> <ul><li><a href="/wiki/Monetary_circuit_theory" title="Monetary circuit theory">Circuitism</a></li></ul></li> <li><a href="/wiki/Disequilibrium_macroeconomics" title="Disequilibrium macroeconomics">Disequilibrium</a></li> <li><a href="/wiki/Marxian_economics" title="Marxian economics">Marxian</a></li> <li><a href="/wiki/Market_monetarism" title="Market monetarism">Market monetarism</a></li></div></div></div></td></tr></tbody></table><div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Notable <a href="/wiki/Category:Macroeconomists" title="Category:Macroeconomists">macroeconomists</a></th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <li><a href="/wiki/Fran%C3%A7ois_Quesnay" title="François Quesnay">François Quesnay</a></li> <li><a href="/wiki/Adam_Smith" title="Adam Smith">Adam Smith</a></li> <li><a href="/wiki/Thomas_Robert_Malthus" title="Thomas Robert Malthus">Thomas Robert Malthus</a></li> <li><a href="/wiki/Karl_Marx" title="Karl Marx">Karl Marx</a></li> <li><a href="/wiki/L%C3%A9on_Walras" title="Léon Walras">Léon Walras</a></li> <li><a href="/wiki/Knut_Wicksell" title="Knut Wicksell">Knut Wicksell</a></li> <li><a href="/wiki/Irving_Fisher" title="Irving Fisher">Irving Fisher</a></li> <li><a href="/wiki/Wesley_Clair_Mitchell" title="Wesley Clair Mitchell">Wesley Clair Mitchell</a></li> <li><a href="/wiki/John_Maynard_Keynes" title="John Maynard Keynes">John Maynard Keynes</a></li> <li><a href="/wiki/Alvin_Hansen" title="Alvin Hansen">Alvin Hansen</a></li> <li><a href="/wiki/Micha%C5%82_Kalecki" title="Michał Kalecki">Michał Kalecki</a></li> <li><a href="/wiki/Gunnar_Myrdal" title="Gunnar Myrdal">Gunnar Myrdal</a></li> <li><a href="/wiki/Simon_Kuznets" title="Simon Kuznets">Simon Kuznets</a></li> <li><a href="/wiki/Joan_Robinson" title="Joan Robinson">Joan Robinson</a></li> <li><a href="/wiki/Friedrich_Hayek" title="Friedrich Hayek">Friedrich Hayek</a></li> <li><a href="/wiki/John_Hicks" title="John Hicks">John Hicks</a></li> <li><a href="/wiki/Richard_Stone" title="Richard Stone">Richard Stone</a></li> <li><a href="/wiki/Hyman_Minsky" title="Hyman Minsky">Hyman Minsky</a></li> <li><a href="/wiki/Milton_Friedman" title="Milton Friedman">Milton Friedman</a></li> <li><a href="/wiki/Paul_Samuelson" title="Paul Samuelson">Paul Samuelson</a></li> <li><a href="/wiki/Lawrence_Klein" title="Lawrence Klein">Lawrence Klein</a></li> <li><a href="/wiki/Edmund_Phelps" title="Edmund Phelps">Edmund Phelps</a></li> <li><a href="/wiki/Robert_Lucas_Jr." title="Robert Lucas Jr.">Robert Lucas Jr.</a></li> <li><a href="/wiki/Edward_C._Prescott" title="Edward C. Prescott">Edward C. Prescott</a></li> <li><a href="/wiki/Peter_Diamond" title="Peter Diamond">Peter Diamond</a></li> <li><a href="/wiki/William_Nordhaus" title="William Nordhaus">William Nordhaus</a></li> <li><a href="/wiki/Joseph_Stiglitz" title="Joseph Stiglitz">Joseph Stiglitz</a></li> <li><a href="/wiki/Thomas_J._Sargent" title="Thomas J. Sargent">Thomas J. Sargent</a></li> <li><a href="/wiki/Paul_Krugman" title="Paul Krugman">Paul Krugman</a></li> <li><a href="/wiki/Greg_Mankiw" title="Greg Mankiw">N. Gregory Mankiw</a></li></div></div></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Critique</th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><a href="/wiki/Critique_of_political_economy" title="Critique of political economy">Critique of political economy</a></div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">See also</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="excerpt-block"><div class="excerpt"> <li><a href="/wiki/Macroeconomic_model" title="Macroeconomic model">Macroeconomic model</a></li> <li><a href="/wiki/List_of_important_publications_in_economics#Macroeconomics" title="List of important publications in economics">Publications in macroeconomics</a></li> <li><a href="/wiki/Economics" title="Economics">Economics</a> <ul><li><a href="/wiki/Applied_economics" title="Applied economics">Applied</a></li></ul></li> <li><a href="/wiki/Microeconomics" title="Microeconomics">Microeconomics</a></li> <li><a href="/wiki/Political_economy" title="Political economy">Political economy</a></li> <li><a href="/wiki/Mathematical_economics" title="Mathematical economics">Mathematical economics</a></li></div></div></div></td></tr><tr><td class="navbox-abovebelow" colspan="2" style="font-weight:bold;"><div><span class="noviewer" typeof="mw:File"><span title="Category"><img alt="" src="//upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/16px-Symbol_category_class.svg.png" decoding="async" width="16" height="16" class="mw-file-element" srcset="//upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/23px-Symbol_category_class.svg.png 1.5x, //upload.wikimedia.org/wikipedia/en/thumb/9/96/Symbol_category_class.svg/31px-Symbol_category_class.svg.png 2x" data-file-width="180" data-file-height="185" /></span></span> <a href="/wiki/Category:Macroeconomics" title="Category:Macroeconomics">Category</a></div></td></tr></tbody></table></div> <div class="navbox-styles"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1236075235"><style data-mw-deduplicate="TemplateStyles:r1184024115">.mw-parser-output .div-col{margin-top:0.3em;column-width:30em}.mw-parser-output .div-col-small{font-size:90%}.mw-parser-output .div-col-rules{column-rule:1px solid #aaa}.mw-parser-output .div-col dl,.mw-parser-output .div-col ol,.mw-parser-output .div-col ul{margin-top:0}.mw-parser-output .div-col li,.mw-parser-output .div-col dd{page-break-inside:avoid;break-inside:avoid-column}</style></div><div role="navigation" class="navbox" aria-labelledby="Keynesians" style="padding:3px"><table class="nowraplinks mw-collapsible mw-collapsed navbox-inner" style="border-spacing:0;background:transparent;color:inherit"><tbody><tr><th scope="col" class="navbox-title" colspan="2"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1129693374"><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r1239400231"><div class="navbar plainlinks hlist navbar-mini"><ul><li class="nv-view"><a href="/wiki/Template:Keynesians" title="Template:Keynesians"><abbr title="View this template">v</abbr></a></li><li class="nv-talk"><a href="/wiki/Template_talk:Keynesians" title="Template talk:Keynesians"><abbr title="Discuss this template">t</abbr></a></li><li class="nv-edit"><a href="/wiki/Special:EditPage/Template:Keynesians" title="Special:EditPage/Template:Keynesians"><abbr title="Edit this template">e</abbr></a></li></ul></div><div id="Keynesians" style="font-size:114%;margin:0 4em"><a href="/wiki/Keynesian_economics" title="Keynesian economics"><em style="font-style:normal;">Keynesians</em></a></div></th></tr><tr><th scope="row" class="navbox-group" style="width:1%">Founder</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/John_Maynard_Keynes" title="John Maynard Keynes">John Maynard Keynes</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Neoclassical_synthesis" title="Neoclassical synthesis">Neo-Keynesians</a></th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Gardner_Ackley" title="Gardner Ackley">Gardner Ackley</a></li> <li><a href="/wiki/William_Baumol" title="William Baumol">William Baumol</a></li> <li><a href="/wiki/James_Duesenberry" title="James Duesenberry">James Duesenberry</a></li> <li><a href="/wiki/Robert_Eisner" title="Robert Eisner">Robert Eisner</a></li> <li><a href="/wiki/Trygve_Haavelmo" title="Trygve Haavelmo">Trygve Haavelmo</a></li> <li><a href="/wiki/Alvin_Hansen" title="Alvin Hansen">Alvin Hansen</a></li> <li><a href="/wiki/Roy_Harrod" title="Roy Harrod">Roy Harrod</a></li> <li><a href="/wiki/Walter_Heller" title="Walter Heller">Walter Heller</a></li> <li><a href="/wiki/John_Hicks" title="John Hicks">John Hicks</a></li> <li><a href="/wiki/Lawrence_Klein" title="Lawrence Klein">Lawrence Klein</a></li> <li><a href="/wiki/James_Meade" title="James Meade">James Meade</a></li> <li><a href="/wiki/Lloyd_Metzler" title="Lloyd Metzler">Lloyd Metzler</a></li> <li><a href="/wiki/Franco_Modigliani" title="Franco Modigliani">Franco Modigliani</a></li> <li><a href="/wiki/Robert_Mundell" title="Robert Mundell">Robert Mundell</a></li> <li><a href="/wiki/Arthur_Melvin_Okun" title="Arthur Melvin Okun">Arthur Melvin Okun</a></li> <li><a href="/wiki/Don_Patinkin" title="Don Patinkin">Don Patinkin</a></li> <li><a href="/wiki/Bill_Phillips_(economist)" title="Bill Phillips (economist)">Bill Phillips</a></li> <li><a href="/wiki/William_Poole_(economist)" title="William Poole (economist)">William Poole</a></li> <li><a href="/wiki/Paul_Samuelson" title="Paul Samuelson">Paul Samuelson</a></li> <li><a href="/wiki/Robert_Solow" title="Robert Solow">Robert Solow</a></li> <li><a href="/wiki/James_Tobin" title="James Tobin">James Tobin</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a href="/wiki/Post-Keynesian_economics" title="Post-Keynesian economics">Post-Keynesians</a></th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/Victoria_Chick" title="Victoria Chick">Victoria Chick</a></li> <li><a href="/wiki/Paul_Davidson_(economist)" title="Paul Davidson (economist)">Paul Davidson</a></li> <li><a href="/wiki/Evsey_Domar" title="Evsey Domar">Evsey Domar</a></li> <li><a href="/wiki/James_K._Galbraith" title="James K. Galbraith">James K. Galbraith</a></li> <li><a href="/wiki/John_Kenneth_Galbraith" title="John Kenneth Galbraith">John Kenneth Galbraith</a></li> <li><a href="/wiki/Wynne_Godley" title="Wynne Godley">Wynne Godley</a></li> <li><a href="/wiki/Myron_J._Gordon" title="Myron J. Gordon">Myron J. Gordon</a></li> <li><a href="/wiki/Geoffrey_Harcourt" title="Geoffrey Harcourt">Geoff Harcourt</a></li> <li><a href="/wiki/Michael_Hudson_(economist)" title="Michael Hudson (economist)">Michael Hudson</a></li> <li><a href="/wiki/Richard_Kahn,_Baron_Kahn" title="Richard Kahn, Baron Kahn">Richard Kahn</a></li> <li><a href="/wiki/Nicholas_Kaldor" title="Nicholas Kaldor">Nicholas Kaldor</a></li> <li><a href="/wiki/Micha%C5%82_Kalecki" title="Michał Kalecki">Michał Kalecki</a></li> <li><a href="/wiki/Steve_Keen" title="Steve Keen">Steve Keen</a></li> <li><a href="/wiki/Jan_Kregel" title="Jan Kregel">Jan Kregel</a></li> <li><a href="/wiki/Marc_Lavoie" title="Marc Lavoie">Marc Lavoie</a></li> <li><a href="/wiki/Abba_P._Lerner" title="Abba P. Lerner">Abba P. Lerner</a></li> <li><a href="/wiki/Hyman_Minsky" title="Hyman Minsky">Hyman Minsky</a></li> <li><a href="/wiki/Bill_Mitchell_(economist)" title="Bill Mitchell (economist)">Bill Mitchell</a></li> <li><a href="/wiki/Basil_Moore" title="Basil Moore">Basil Moore</a></li> <li><a href="/wiki/Steven_Pressman_(economist)" title="Steven Pressman (economist)">Steven Pressman</a></li> <li><a href="/wiki/Joan_Robinson" title="Joan Robinson">Joan Robinson</a></li> <li><a href="/wiki/G._L._S._Shackle" title="G. L. S. Shackle">G. L. S. Shackle</a></li> <li><a href="/wiki/Pavlina_R._Tcherneva" title="Pavlina R. Tcherneva">Pavlina R. Tcherneva</a></li> <li><a href="/wiki/Anthony_Thirlwall" class="mw-redirect" title="Anthony Thirlwall">Anthony Thirlwall</a></li> <li><a href="/wiki/William_Vickrey" title="William Vickrey">William Vickrey</a></li> <li><a href="/wiki/Sidney_Weintraub_(economist_born_1914)" class="mw-redirect" title="Sidney Weintraub (economist born 1914)">Sidney Weintraub</a></li> <li><a href="/wiki/L._Randall_Wray" title="L. Randall Wray">L. Randall Wray</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%"><a class="mw-selflink selflink">New Keynesians</a></th><td class="navbox-list-with-group navbox-list navbox-even hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"> <ul><li><a href="/wiki/George_Akerlof" title="George Akerlof">George Akerlof</a></li> <li><a href="/wiki/Ben_Bernanke" title="Ben Bernanke">Ben Bernanke</a></li> <li><a href="/wiki/Olivier_Blanchard" title="Olivier Blanchard">Olivier Blanchard</a></li> <li><a href="/wiki/Alan_Blinder" title="Alan Blinder">Alan Blinder</a></li> <li><a href="/wiki/Guillermo_Calvo" title="Guillermo Calvo">Guillermo Calvo</a></li> <li><a href="/wiki/Richard_Clarida" title="Richard Clarida">Richard Clarida</a></li> <li><a href="/wiki/J._Bradford_DeLong" class="mw-redirect" title="J. Bradford DeLong">Brad DeLong</a></li> <li><a href="/wiki/Huw_Dixon" title="Huw Dixon">Huw Dixon</a></li> <li><a href="/wiki/Stanley_Fischer" title="Stanley Fischer">Stanley Fischer</a></li> <li><a href="/wiki/Jordi_Gal%C3%AD" title="Jordi Galí">Jordi Galí</a></li> <li><a href="/wiki/Mark_Gertler_(economist)" title="Mark Gertler (economist)">Mark Gertler</a></li> <li><a href="/wiki/Robert_J._Gordon" title="Robert J. Gordon">Robert J. Gordon</a></li> <li><a href="/wiki/Stephany_Griffith-Jones" title="Stephany Griffith-Jones">Stephany Griffith-Jones</a></li> <li><a href="/wiki/Nobuhiro_Kiyotaki" title="Nobuhiro Kiyotaki">Nobuhiro Kiyotaki</a></li> <li><a href="/wiki/Paul_Krugman" title="Paul Krugman">Paul Krugman</a></li> <li><a href="/wiki/Greg_Mankiw" title="Greg Mankiw">Greg Mankiw</a></li> <li><a href="/wiki/Marc_Melitz" title="Marc Melitz">Marc Melitz</a></li> <li><a href="/wiki/Maurice_Obstfeld" title="Maurice Obstfeld">Maurice Obstfeld</a></li> <li><a href="/wiki/Edmund_Phelps" title="Edmund Phelps">Edmund Phelps</a></li> <li><a href="/wiki/Ricardo_Reis" title="Ricardo Reis">Ricardo Reis</a></li> <li><a href="/wiki/Kenneth_Rogoff" title="Kenneth Rogoff">Kenneth Rogoff</a></li> <li><a href="/wiki/David_Romer" title="David Romer">David Romer</a></li> <li><a href="/wiki/Julio_Rotemberg" title="Julio Rotemberg">Julio Rotemberg</a></li> <li><a href="/wiki/Robert_J._Shiller" title="Robert J. Shiller">Robert Shiller</a></li> <li><a href="/wiki/Andrei_Shleifer" title="Andrei Shleifer">Andrei Shleifer</a></li> <li><a href="/wiki/Joseph_Stiglitz" title="Joseph Stiglitz">Joseph Stiglitz</a></li> <li><a href="/wiki/Lawrence_Summers" title="Lawrence Summers">Lawrence Summers</a></li> <li><a href="/wiki/John_B._Taylor" title="John B. Taylor">John B. Taylor</a></li> <li><a href="/wiki/Michael_Woodford_(economist)" class="mw-redirect" title="Michael Woodford (economist)">Michael Woodford</a></li> <li><a href="/wiki/Janet_Yellen" title="Janet Yellen">Janet Yellen</a></li></ul> </div></td></tr><tr><th scope="row" class="navbox-group" style="width:1%">Related</th><td class="navbox-list-with-group navbox-list navbox-odd hlist" style="width:100%;padding:0"><div style="padding:0 0.25em"><div class="div-col"> <div class="CategoryTreeTag" data-ct-options="{"mode":20,"hideprefix":20,"showcount":false,"namespaces":false,"notranslations":false}"><div class="CategoryTreeSection"><div class="CategoryTreeItem"><span class="CategoryTreeBullet"><a class="CategoryTreeToggle" data-ct-title="Keynesian_economics" aria-expanded="false"></a> </span> <bdi dir="ltr"><a href="/wiki/Category:Keynesian_economics" title="Category:Keynesian economics">Keynesian economics</a></bdi></div><div class="CategoryTreeChildren" style="display:none"></div></div></div> </div></div></td></tr></tbody></table></div>    </div><noscript><img src="https://login.wikimedia.org/wiki/Special:CentralAutoLogin/start?type=1x1" alt="" width="1" height="1" style="border: none; position: absolute;"></noscript> <div class="printfooter" data-nosnippet="">Retrieved from "<a dir="ltr" href="https://en.wikipedia.org/w/index.php?title=New_Keynesian_economics&oldid=1256038639">https://en.wikipedia.org/w/index.php?title=New_Keynesian_economics&oldid=1256038639</a>"</div></div> <div id="catlinks" class="catlinks" data-mw="interface"><div id="mw-normal-catlinks" class="mw-normal-catlinks"><a href="/wiki/Help:Category" title="Help:Category">Category</a>: <ul><li><a href="/wiki/Category:New_Keynesian_economics" title="Category:New Keynesian economics">New Keynesian economics</a></li></ul></div><div id="mw-hidden-catlinks" class="mw-hidden-catlinks mw-hidden-cats-hidden">Hidden categories: <ul><li><a href="/wiki/Category:Harv_and_Sfn_no-target_errors" title="Category:Harv and Sfn no-target errors">Harv and Sfn no-target errors</a></li><li><a href="/wiki/Category:CS1_errors:_missing_periodical" title="Category:CS1 errors: missing periodical">CS1 errors: missing periodical</a></li><li><a href="/wiki/Category:Articles_with_short_description" title="Category:Articles with short description">Articles with short description</a></li><li><a href="/wiki/Category:Short_description_is_different_from_Wikidata" title="Category:Short description is different from Wikidata">Short description is different from Wikidata</a></li><li><a href="/wiki/Category:Use_dmy_dates_from_June_2021" title="Category:Use dmy dates from June 2021">Use dmy dates from June 2021</a></li><li><a href="/wiki/Category:Articles_with_excerpts" title="Category:Articles with excerpts">Articles with excerpts</a></li></ul></div></div> </div> </main> </div> <div class="mw-footer-container"> <footer id="footer" class="mw-footer" > <ul id="footer-info"> <li id="footer-info-lastmod"> This page was last edited on 7 November 2024, at 22:29<span class="anonymous-show"> (UTC)</span>.</li> <li id="footer-info-copyright">Text is available under the <a href="/wiki/Wikipedia:Text_of_the_Creative_Commons_Attribution-ShareAlike_4.0_International_License" title="Wikipedia:Text of the Creative Commons Attribution-ShareAlike 4.0 International License">Creative Commons Attribution-ShareAlike 4.0 License</a>; additional terms may apply. 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