New Keynesian Economics

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Dictionary Says

Definition of 'New Keynesian Economics'

The modern macroeconomic school of thought that evolved from classical Keynesian economics. This revised theory differs from classical Keynesian thinking in terms of how quickly prices and wages adjust. New Keynesian advocates maintain that prices and wages are "sticky", meaning that they adjust more slowly to short-term economic fluctuations.

This in turn explains such economic factors as involuntary unemployment and the impact of federal monetary policies.
Investopedia Says

Investopedia explains 'New Keynesian Economics'

New Keynesian economics as a philosophy took root in the 1980s in response to the criticisms of many of Keynes' original precepts as espoused by classical economists in the previous decade.

The new Keynesian theory attempts to address, among other things, the sluggish behavior of prices and its cause. The theory explains how market failures could be caused by inefficiencies and might justify government intervention. Whether this intervention should occur is a more complex question.
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'New Keynesian Economics'

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    ... invest in new factories. Unemployment One of the groundbreaking aspects of the
    Keynesian theory was its treatment of employment. Classical economics focused on ...

  • Macroeconomics: Schools Of Thought | Investopedia

    http://www.investopedia.com/university/macroeconomics/macroeconomics1.asp
    ... microeconomic foundations to traditional Keynesian economic theories ... While New
    Keynesians do accept that ... Neoclassical Neoclassical economics assumes that people ...

  • What Caused The Great Depression?

    http://www.investopedia.com/articles/economics/08/cause-of-great-depression.asp
    ... The New Deal was loosely based on Keynesian economics, specifically on
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  • Giants Of Finance: John Maynard Keynes

    http://www.investopedia.com/articles/economics/09/john-maynard-keynes-keynesian.asp
    ... influenced the New Deal and the welfare state that grew up in the postwar era.
    (To learn the differences between supply-side and Keynesian economics, read ...

  • Monetarism: Printing Money To Curb Inflation

    http://www.investopedia.com/articles/economics/08/monetarism.asp
    ... resulted in the use of Keynesian economics in increasing ... of Monetarism Economists
    following the Keynesian approach were ... it is still a relatively new school of ...

  • The History Of Economic Thought

    http://www.investopedia.com/articles/economics/08/economic-thought.asp
    ... took the mathematical modeling of economies to new heights, introducing ... and Economics
    Basics: Utility.) Keynesian Economics John Maynard Keynes' mixed economy ...

  • What is the Keynesian multiplier?

    http://www.investopedia.com/ask/answers/09/keynesian-multiplier.asp
    ... This idea was at the core of the New Deal and the growth of the welfare state. ...
    For more, see Can Keynesian Economics Reduce Boom-Bust Cycles? ...

  • Microeconomics: A Brief History | Investopedia

    http://www.investopedia.com/university/microeconomics/microeconomics1.asp
    ... To learn more see, Can Keynesian Economics Reduce Boom ... Microeconomic Renaissance
    While Keynesian economic theory was ... world's major economies, the new concept of ...

  • Understanding Supply-Side Economics

    http://www.investopedia.com/articles/05/011805.asp
    ... has a printing press, the Keynesian believes this ... Conclusion Supply-side economics
    has a colorful history. ... baked economic theory - economist and New York Times ...

  • Free Market Maven: Milton Friedman

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    ... Woods falling apart - an event the viability of the new markets depended ... According
    to critics of Keynesianism, Keynesian economics is attractive to governments ...

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