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dc.contributor.authorvan der Ploeg, Fredericken_US
dc.date.accessioned2009-01-28T15:52:53Z-
dc.date.available2009-01-28T15:52:53Z-
dc.date.issued2005en_US
dc.identifier.urihttp://hdl.handle.net/10419/18788-
dc.description.abstractAfter a brief review of classical, Keynesian, New Classical and New Keynesian theories of macroeconomic policy, we assess whether New Keynesian Economics captures the quintessential features stressed by J.M. Keynes. Particular attention is paid to Keynesian features omitted in New Keynesian workhorses such as the micro-founded Keynesian multiplier and the New Keynesian Phillips curve. These theories capture wage and price sluggishness and aggregate demand externalities by departing from a competitive framework and give a key role to expectations. The main deficiencies, however, are the inability to predict a pro-cyclical real wage in the face of demand shocks, the absence of inventories, credit constraints and bankruptcies in explaining the business cycle, and no effect of the nominal as well as the real interest rate on aggregate demand. Furthermore, they fail to allow for quantity rationing and to model unemployment as a catastrophic event. The macroeconomics based on the New Keynesian Phillips curve has quite a way to go before the quintessential Keynesian features are captured.en_US
dc.language.isoengen_US
dc.publisheren_US
dc.relation.ispartofseriesCESifo working papers 1424en_US
dc.subject.jelE32en_US
dc.subject.jelE63en_US
dc.subject.jelE12en_US
dc.subject.ddc330en_US
dc.subject.keywordKeynesian economicsen_US
dc.subject.keywordNew Keynesian Phillips curveen_US
dc.subject.keywordmonopolistic competitionen_US
dc.subject.keywordnominal wage rigidityen_US
dc.subject.keywordwelfareen_US
dc.subject.keywordpro-cyclical real wageen_US
dc.subject.keywordinventoriesen_US
dc.subject.stwUngleichgewichtstheorieen_US
dc.subject.stwKeynesianismusen_US
dc.subject.stwKeynes John Maynarden_US
dc.titleBack to Keynes?en_US
dc.typeWorking Paperen_US
dc.identifier.ppn484737899en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
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