||||"The New Keynesian model is a beautiful construction. But it is only a basic structure that needs to be extended in many ways if we are to understand the world, and design policy. An essential extension is a treatment of the labor market that allows for invo
The past fifteen years have witnessed the rise of the New Keynesian model as a framework of reference for the analysis of fluctuations and stabilization policies. That framework, which combines the rigor and internal consistency of dynamic general equilibrium models with such typically Keynesian assumptions as monopolistic competition and nominal rigidities, makes possible a meaningful, welfare-based analysis of the effects of monetary policy rules. But the conspic... [PDF.qg85] Unemployment Fluctuations and Stabilization Policies: A New Keynesian Perspective (Zeuthen Lectures) Rating: 4.91 (784 Votes)
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