Looking for the microfoundations : nominal rigidities and the New Keynesian economics
Keywords:Keynesian theory, Long-term contracts, Mankiw-Romer-Weil model, Microeconomic conditions, Keynesizm, Kontrakty długoterminowe, Model Mankiwa-Romera-Weila, Uwarunkowania mikroekonomiczne
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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Copyright (c) 2002 Poznań University of Economics and Business
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