Abstract
In the 1980s theoretical research in macroeconomics was dominated by what has become known as new-Keynesian economics. The principal aim of new-Keynesian economics is to explain how Keynesian results can be reconciled with the neo-classical principles of utility and profit maximization. This paper provides a survey and an assessment of New Keynesian economics. In our view, the theoretical foundation of new-Keynesian economics would be strengthened if more institutional detail is added to the analysis. The real challenge for new-Keynesian economics is to develop macrocconomics (and microeconomics) from a theory that takes the working of markets seriously.
Original language | English |
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Pages (from-to) | 323-352 |
Number of pages | 30 |
Journal | De Economist |
Volume | 141 |
Issue number | 3 |
Publication status | Published - 1993 |
Keywords
- IMPLICIT CONTRACTS
- ASYMMETRIC INFORMATION
- IMPERFECT INFORMATION
- COORDINATION GAMES
- LABOR-MARKETS
- UNEMPLOYMENT
- EQUILIBRIUM
- MODELS
- MONEY
- COMPETITION