Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/83933
Authors: 
Dixon, Huw David
Year of Publication: 
2007
Series/Report no.: 
Cardiff Economics Working Papers E2007/3
Abstract: 
This dictionary entry defines the development of new Keynesian macroeconomics (NKM) since the 1980s. I argue that the key defining feature NKM is the introduction of imperfect competition, making price and/or wage setting endogenous and hence allowing for a rigorous understanding of nominal rigidity. This has led to a shift away from perfect competition in macroeconomics. The combination of NKM with dynamic macroeconomic modelling has led to the current orthodoxy: the new-neoclassical synthesis. Dynamic wage and price models lead to monetary neutrality in steady-state, non-neutrality out of steady-state. Other themes in NKM include efficiency wage theory and coordination failure.
Subjects: 
Keynesian
nominal
rigidity
new
JEL: 
E1
E3
E4
B22
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.