
Available under Creative Commons-NonCommercial-ShareAlike 4.0 International License.
New Keynesian economics emerged in the last three decades as the dominant school of macroeconomicthought for two reasons. First, it successfully incorporated important monetarist and new classical ideas into Keynesian economics. Second, developments in the 1980s and 1990s shook economists’ confidence in the ability of the monetarist or the new classical school alone to explain macroeconomic change.
- 1389 reads