The State of New Keynesian Economics: A Partial Assessment

@article{Gal2018TheSO,
  title={The State of New Keynesian Economics: A Partial Assessment},
  author={Jordi Gal{\'i}},
  journal={Macroeconomics: Monetary \& Fiscal Policies eJournal},
  year={2018}
}
  • J. Galí
  • Published 1 July 2018
  • Economics
  • Macroeconomics: Monetary & Fiscal Policies eJournal
In August 2007, when the first signs emerged of what would come to be the most damaging global financial crisis since the Great Depression, the New Keynesian paradigm was dominant in macroeconomics. Ten years later, tons of ammunition has been fired against modern macroeconomics in general, and against dynamic stochastic general equilibrium models that build on the New Keynesian framework in particular. Those criticisms notwithstanding, the New Keynesian model arguably remains the dominant… 
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