Looking for the microfoundations : nominal rigidities and the New Keynesian economics

Authors

  • Izabela Bludnik
  • Jacek Wallusch

DOI:

https://doi.org/10.18559/ebr.2002.1.486

Keywords:

Keynesian theory, Long-term contracts, Mankiw-Romer-Weil model, Microeconomic conditions, Keynesizm, Kontrakty długoterminowe, Model Mankiwa-Romera-Weila, Uwarunkowania mikroekonomiczne

Abstract

This paper presents a critical description of the most influential New-Keynesian models with nominal rigidities. The study aims to elucidate the concept of long-term contracts, small menu costs, and near-rationality. Since this approach avoids the formulation of market clearing price, the early New-Keynesian models are incomparable to those developed by New Classical Economy. Hence, the New Keynesian economics, contrary to the common interpretation, is unable to challenge its adversaries. (original abstract)

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Published

2002-06-30

How to Cite

Bludnik, I., & Wallusch, J. (2002). Looking for the microfoundations : nominal rigidities and the New Keynesian economics. Economics and Business Review, 2(1), 25–42. https://doi.org/10.18559/ebr.2002.1.486

Issue

Vol. 2 No. 1 (2002)

Section

Research article- regular issue

License

Copyright (c) 2002 Poznań University of Economics and Business

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.