15 terms

Neo-Keynesian economics

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Neo-Keynesian economics
was developed post-war period from the writings of John Maynard
John Hicks
attempted to interpret and formalize keynes' writings
new neo-classical synthesis
forms the mainstream of macroeconomic theory
John Maynard Keynes
provided the framework for synthesizing a host of economic ideas
neoclassical synthesis
Keynesian analysis combined with neoclassical economics
IS/LM model
investment saving-liquidity preference money supply
Phillips curve
indicated that increased employment, and decreased unemployment, implied increased inflation
Milton Friedman
embraced the techniques of treating the entire economy as having a supply and demand equilibrium.
stagflation
persistent high inflation combined with high unemployment and stagnant demand in a country's economy.
1990s
uncoupling" of money supply and inflation caused an increasing questioning of the original form of monetarism
Robert Lucas
argues that rational expectations will defeat any monetary or fiscal policy.
Neoclassical economics
used for approaches to economics focusing on the determination of prices, outputs, and income distributions in markets through supply and demand,
The primary disagreement between new classical and new Keynesian economists
how quickly wages and prices adjust
New Keynesian economists
believe that market-clearing models cannot explain short-run economic fluctuations
macroeconomic
a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole
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