topic keynesian ★ seed

New Keynesian Economics

1980s-present synthesis of Keynesian insights with neoclassical microfoundations. Sticky prices, menu costs, and imperfect competition explain why markets fail to clear.

#new-keynesian #sticky-prices #microfoundations #synthesis

Sub-topics

N. Gregory Mankiw concept

Leading New Keynesian. His textbook Principles of Economics is the most widely used in the world. Showed that small menu costs can cause large macroeconomic fluctuations.