New Keynesian economics

E9569

Keynesian economics tradition macroeconomic school of thought

New Keynesian economics is a modern macroeconomic framework that incorporates rational expectations and micro-founded price and wage rigidities to explain short-run economic fluctuations and justify active stabilization policy.

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All labels observed (12)

Label	Occurrences
New Keynesian economics canonical	23
New Keynesian models	5
New Keynesian Phillips curve	4
New Keynesian	2
New Keynesian Economics (with David H. Romer and others)	1
New Keynesian economics tradition	1
New Keynesian macroeconomic theory	1
New Keynesian macroeconomics	1
New Keynesian monetary theory	1
New Keynesian school of macroeconomics	1
The New Keynesian Approach to Monetary Policy	1
microfoundations of macroeconomics	1

How this entity was disambiguated

This entity first appeared as the object of triple T85978 — resolving that mention is where its identity was fixed. The disambiguator weighed these candidate entities and picked the highlighted one (or “None”, minting a new entity). This is how homonymy is resolved: the same surface form can point to different entities.

NED1 Entity disambiguation (via context triple) gpt-5-mini-2025-08-07

Target entity: New Keynesian economics
Context triple: [John Maynard Keynes, influenced, New Keynesian economics]

A. Keynesian economics
Keynesian economics is a macroeconomic theory that emphasizes the role of aggregate demand and government intervention in stabilizing economic fluctuations and reducing unemployment.
B. the "Volcker shock" in U.S. monetary policy
The "Volcker shock" in U.S. monetary policy refers to the dramatic interest rate hikes and tight monetary stance of the early 1980s aimed at breaking entrenched inflation, which triggered a deep recession but ultimately restored price stability and reshaped central banking practice.
C. The General Theory of Employment, Interest and Money
The General Theory of Employment, Interest and Money is John Maynard Keynes’s landmark 1936 book that founded modern macroeconomics by challenging classical views and explaining the causes of prolonged unemployment and economic downturns.
D. A Treatise on Money
A Treatise on Money is an influential two-volume work by economist John Maynard Keynes that analyzes the functioning of monetary systems, credit, and business cycles in modern economies.
E. John Maynard Keynes
John Maynard Keynes was a British economist whose revolutionary ideas about government intervention in the economy profoundly shaped modern macroeconomics and policies adopted during and after the Great Depression.
F. None of above. chosen
G. Unsure - the case is ambiguous/there is not enough information to decide.

NED2 Entity disambiguation (via description) gpt-5-mini-2025-08-07

Target entity: New Keynesian economics
Target entity description: New Keynesian economics is a modern macroeconomic framework that incorporates rational expectations and micro-founded price and wage rigidities to explain short-run economic fluctuations and justify active stabilization policy.

A. Keynesian economics
Keynesian economics is a macroeconomic theory that emphasizes the role of aggregate demand and government intervention in stabilizing economic fluctuations and reducing unemployment.
B. the "Volcker shock" in U.S. monetary policy
The "Volcker shock" in U.S. monetary policy refers to the dramatic interest rate hikes and tight monetary stance of the early 1980s aimed at breaking entrenched inflation, which triggered a deep recession but ultimately restored price stability and reshaped central banking practice.
C. The General Theory of Employment, Interest and Money
The General Theory of Employment, Interest and Money is John Maynard Keynes’s landmark 1936 book that founded modern macroeconomics by challenging classical views and explaining the causes of prolonged unemployment and economic downturns.
D. A Treatise on Money
A Treatise on Money is an influential two-volume work by economist John Maynard Keynes that analyzes the functioning of monetary systems, credit, and business cycles in modern economies.
E. John Maynard Keynes
John Maynard Keynes was a British economist whose revolutionary ideas about government intervention in the economy profoundly shaped modern macroeconomics and policies adopted during and after the Great Depression.
F. None of above. chosen

Statements (50)

Predicate	Object
instanceOf	Keynesian economics tradition ⓘ macroeconomic school of thought ⓘ
aimsToExplain	short-run economic fluctuations ⓘ
associatedWithEconomist	David Romer ⓘ Gregory Mankiw ⓘ John B. Taylor ⓘ Jordi Galí ⓘ Michael Woodford ⓘ Olivier Blanchard ⓘ Stanley Fischer ⓘ
contrastsWith	New Classical macroeconomics ⓘ
developedFrom	Old Keynesian economics ⓘ neoclassical synthesis ⓘ
emergedInPeriod	1980s ⓘ late 1970s ⓘ
emphasizes	forward-looking behavior ⓘ importance of expectations ⓘ market imperfections ⓘ non-neutrality of money in the short run ⓘ price rigidities ⓘ role of monetary policy in stabilization ⓘ wage rigidities ⓘ
hasTheoreticalBasisIn	microfoundations ⓘ
includesFeature	Calvo pricing ⓘ efficiency wages ⓘ menu costs ⓘ monopolistic competition in goods markets ⓘ
incorporates	imperfect competition ⓘ nominal rigidities ⓘ sticky prices ⓘ sticky wages ⓘ
influenced	New Neoclassical Synthesis ⓘ modern central bank policy analysis ⓘ
justifiesPolicy	active stabilization policy ⓘ
respondsTo	Lucas critique ⓘ failures of traditional Keynesian models ⓘ
supportsPolicy	countercyclical fiscal policy ⓘ inflation targeting ⓘ monetary policy rules ⓘ
supportsView	systematic monetary policy affects real output in short run ⓘ
typicallyAssumes	representative agent households ⓘ representative firm behavior ⓘ
usesAssumption	rational expectations ⓘ
usesConcept	natural rate of interest ⓘ output gap ⓘ
usesModel	dynamic stochastic general equilibrium models ⓘ
usesTool	Euler equations ⓘ Phillips curve ⓘ linked to: Phillips curve framework intertemporal optimization ⓘ
viewsBusinessCyclesAs	result of nominal and real rigidities ⓘ

How these facts were elicited

Referenced by (42)

Full triples — surface form annotated when it differs from this entity's canonical label.

John Maynard Keynes → influenced → New Keynesian economics ⓘ

The General Theory of Employment, Interest and Money → influenced → New Keynesian economics ⓘ

Phillips curve framework → extendedBy → New Keynesian Phillips curve ⓘ