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The New Keynesian Synthesis

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  • David Romer

Abstract

The new Keynesians made more rapid progress in understanding the microeconomics of unemployment than in understanding the microeconomics of nominal price rigidity. But the past five years have seen important breakthroughs in this second area. This paper will describe these breakthroughs, discuss our current understanding of nominal rigidity, and assess the work that remains to be done.

Suggested Citation

  • David Romer, 1993. "The New Keynesian Synthesis," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 5-22, Winter.
    • Handle: RePEc:aea:jecper:v:7:y:1993:i:1:p:5-22
    Note: DOI: 10.1257/jep.7.1.5
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    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/jep.7.1.5
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    References listed on IDEAS

    as
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    8. Russell Cooper & Andrew John, 1988. "Coordinating Coordination Failures in Keynesian Models," The Quarterly Journal of Economics, Oxford University Press, vol. 103(3), pages 441-463.
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    More about this item

    JEL classification:

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

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