Еconomic Theory and the New-Keynesian School
10 Pages Posted: 30 Jan 2014
Date Written: January 30, 2014
In this paper it is described the school of neo-Keynesians (Akerlof and Stiglitz are in the group of "Hard" New-Keynesians, that don’t accept New neo-classical synthesis, i.e. Dynamic Stochastic General equilibrium models-DSGE), that as a basic source of instability in the economies view the demand аnd supply side shocks, short run is important for them, wages and prices are rigid, expectations of the economic agents are rational, but also historical data are of great importance, and they introduced microeconomic foundations for their macroeconomic models.
Keywords: New-Keynesians, nominal rigidities, microeconomic foundations
JEL Classification: E00, E12
Suggested Citation: Suggested Citation