New Keynesians: A Comment

Posted: 24 Oct 2001

See all articles by Carlos F. Liard-Muriente

Carlos F. Liard-Muriente

Central Connecticut State University - Department of Economics

Date Written: Fall 2001

Abstract

Principal agent, incomplete information, informational asymmetries, non-clearing markets, these are some of the general topics that describe the New Keynesian paradigm. Although accepted and respected in academia, the results of the New Keynesian paradigm are different from the Neo and New Classical traditions. The outcomes generated by New Keynesians challenge mainstream by undermining the general equilibrium vision of markets. Following almost the same methodology of Neoclassical economics, New Keynesians undermine the New Classical foundations while destroying the Neoclassical micro-foundations by showing that markets work different from what mainstream explains. In what follows the task will be to present, analyze and criticize in general terms the New Keynesian paradigm and its manifestation in financial market models.

Keywords: Financial Markets, New Keynesians

JEL Classification: G10, G14

Suggested Citation

Liard-Muriente, Carlos F., New Keynesians: A Comment (Fall 2001). Available at SSRN: https://ssrn.com/abstract=287609

Carlos F. Liard-Muriente (Contact Author)

Central Connecticut State University - Department of Economics ( email )

MS 304
1615 Stanley Street
New Britain, CT 06050
United States
860-832-2732 (Phone)

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