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On the Contribution of New Keynesian Economics

Author

Listed:
  • Hans van Ees

    (University of Groningen)

  • Harry Garretsen

    (University of Groningen)

Abstract

In this paper we consider whether New Keynesian economics provides a meaningful framework for the analysis of the coordination problem in economic society. At this stage the New Keynesian coordination failure framework raises more questions than it provides answers. However, it has the potential to develop to an important area of macroeconomic research if subsequent research is directed toward the implications for economic performance of institutional characteristics of modern economies. In this respect the general equilibrium framework of New Keynesian economics is not appropriate. The analysis of coordination failures may benefit from insights that have been developed in the non-mainstream literature.

Suggested Citation

  • Hans van Ees & Harry Garretsen, 1992. "On the Contribution of New Keynesian Economics," Eastern Economic Journal, Eastern Economic Association, vol. 18(4), pages 465-477, Fall.
    • Handle: RePEc:eej:eeconj:v:18:y:1992:i:4:p:465-477
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume18/V18N4P465_477.pdf
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    References listed on IDEAS

    as
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    JEL classification:

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

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