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Would Keynes Be a New Keynesian?

Author

Listed:
  • Paul Davidson

    (University of Tennessee)

Abstract

Proponents of New Keynesian Economics (NKE) have defined their research agenda as within the Keynesian tradition where a market (supply) failure (i.e., a coordination failure) induces nominal wage/price fixities. This paper demonstrates that NKE models are not only logically incompatible with Keynes's general theory analysis but that NKE produces different--and incompatible--policy recommendations to the unemployment problem vis-a-vis Keynes's general theory. Given the research agenda of New Keynesian and New Classical economics, it is not surprising that the world's major economics are enmeshed in ubiquitous unemployment conditions, and economics has again become the dismal science.

Suggested Citation

  • Paul Davidson, 1992. "Would Keynes Be a New Keynesian?," Eastern Economic Journal, Eastern Economic Association, vol. 18(4), pages 449-463, Fall.
    • Handle: RePEc:eej:eeconj:v:18:y:1992:i:4:p:449-463
    as

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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume18/V18N4P449_463.pdf
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    References listed on IDEAS

    as
    1. Gordon, Robert J, 1990. "What Is New-Keynesian Economics?," Journal of Economic Literature, American Economic Association, vol. 28(3), pages 1115-1171, September.
    2. Mankiw, N Gregory, 1990. "A Quick Refresher Course in Macroeconomics," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1645-1660, December.
    3. Blanchard, Olivier Jean, 1990. "Why does money affect output? A survey," Handbook of Monetary Economics, in: B. M. Friedman & F. H. Hahn (ed.), Handbook of Monetary Economics, edition 1, volume 2, chapter 15, pages 779-835, Elsevier.
    4. David Colander, 1992. "New Keynesian Economics in Perspective," Eastern Economic Journal, Eastern Economic Association, vol. 18(4), pages 438-448, Fall.
    5. David Colander, 2008. "Macroeconomic Policy And Collective Action," Middlebury College Working Paper Series 0332, Middlebury College, Department of Economics.
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    Cited by:

    1. Arne Heise, 2014. "The Future of Economics in a Lakatos–Bourdieu Framework," International Journal of Political Economy, Taylor & Francis Journals, vol. 43(3), pages 70-93, July.
    2. Lila J. Truett & Dale B. Truett, 1998. "The Aggregate Demand/Supply Model: A Premature Requiem?," The American Economist, Sage Publications, vol. 42(1), pages 71-75, March.
    3. Zdravka, Todorova, 2009. "Employer of Last Resort Policy and Feminist Economics: Social Provisioning and Socialization of Investment," MPRA Paper 16240, University Library of Munich, Germany.
    4. Przemysław Włodarczyk, 2018. "Rynek pracy w modelu nowej syntezy neoklasycznej ze sztywnościami płac nominalnych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 51-92.

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    More about this item

    Keywords

    Supply; New Keynesian;

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

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