Neo-Keynesian Economics Summary

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John Maynard Keynes (1883-1946) is a British economist who is the founder of Keynesian economics and the father of modern macroeconomics. He published his foundational book: “The General Theory of Employment, Interest and Money,” in 1936 less than a decade after the great depression of 1929. His theories were largely in contrast with classical economics. Between the 1970s and the 1990s, more economists reviewed the Keynesian economics and proposed some changes, they are known as the New Keynesian economics or Neo-Keynesian. James Tobin, Gregory Mankiw, and David Romer developed the foundations of Neo-Keynesian (Greenlaw, n.d). In the following essay I shed the light on the basic principles of the New Keynesian economics and how it deals with…show more content…
While both types differ in many aspects they build on each other and they try to offer realistic solutions to problems.

References:

Jahan S., Mahmud A.S., & Papageorgiou, C. (2014, September). What is Keynesian economics? Back to basics. Finance & Development. Vol. 51, No. 3. Retrieved from: http://www.imf.org/external/pubs/ft/fandd/2014/09/basics.htm Greenlaw, S. (n.d). What is New Keynesian economics? Seminar in advanced macroeconomics. A quasi-collaborative adventure. Retrieved from: http://econ488.umwblogs.org/course-outline/what-is-new-keynesian-economics/
Mankiw, G. (2008). The New Keynesian Economics. The Concise Encyclopedia of Economics. Retrieved from: http://www.econlib.org/library/Enc/NewKeynesianEconomics.html
Vjyaser. (2013, March 18).Classical and Keynesian Economics: Contending Approaches to Macroeconomics. Slideshare. Retrieved from: http://www.slideshare.net/vjyaser/classical-and-keynesian-economics-contending-approaches-to-macroeconomics
Tejvan. (2015). Keynesian vs classical models and policies. Economics Help. Retrieved from:
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