Would Keynes Be a New Keynesian?

Paul Davidson

Eastern Economic Journal, 1992, vol. 18, issue 4, 449-463

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.

Keywords: Supply; New Keynesian (search for similar items in EconPapers)
JEL-codes: E12 (search for similar items in EconPapers)
Date: 1992
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:18:y:1992:i:4:p:449-463

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