New Keynesian Economics: Coordination failures and real rigidities, Volume 2

N. Gregory Mankiw, David Romer

MIT Press, 1991 - Business & Economics - 466 pages

These two volumes bring together a set of important essays that represent a "new Keynesian" perspective in economics today. This recent work shows how the Keynesian approach to economic fluctuations can be supported by rigorous microeconomic models of economic behavior. The essays are grouped in seven parts that cover costly price adjustment, staggering of wages and prices, imperfect competition, coordination failures, and the markets for labor, credit, and goods. An overall introduction, brief introductions to each of the parts, and a bibliography of additional papers in the field round out this valuable collection. Volume 1 focuses on how friction in price setting at the microeconomic level leads to nominal rigidity at the macroeconomic level, and on the macroeconomic consequences of imperfect competition, including aggregate demand externalities and multipliers. Volume 2 addresses recent research on non-Walrasian features of the labor, credit, and goods markets.

Contributors
George A Akerlof, Costas Azariadis, Laurence Ball, Ben S. Bernanke, Mark Bits, Olivier J. Blanchard, Alan S. Blinder, John Bryant, Andrew S. Caplin, Dennis W. Carlton, Stephen G. Cecchetti, Russell Cooper, Peter A. Diamond, Gary Fethke, Stanley Fischer, Robert E. Hall, Oliver Hart, Andrew John, Nobuhiro Kiyotaki, Alan B. Krueger, David M. Lilien, Ian M. McDonald, N. David Mankiw, Arthur M. Okun, Andres Policano, David Romer, Julio J. Rotemberg, Garth Saloner, Carl Shapiro, Andrei Shleifer, Robert M. Solow, Daniel F. Spulber, Joseph E. Stiglitz, Lawrence H. Summers, John Taylor, Andrew Weiss, Michael Woodford, Janet L. Yellen

Contents

• Coordinating Coordination Failures in Keynesian Models: 3
• A Model of Imperfect Competition with Keynesian: 12
• COSTLY PRICE ADJUSTMENT: 24
• A Simple RationalExpectations KeynesType Model: 25
• A NearRational Model of the Business Cycle with: 43
• Implementation Cycles: 47
• Real Rigidities and the Nonneutrality of Money: 59
• SelfFulfilling Expectations and Fluctuations: 77
• Menu Costs and the Neutrality of Money: 87
• The Rigidity of Prices: 108
• EfficiencyWage Models of Unemployment: 113
• The New Keynesian Economics and the OutputInflation: 135
• Efficiency Wages and the Interindustry Wage Structure: 143
• Implicit Contracts and FixedPrice Equilibria: 187
• Wage Bargaining and Employment: 211
• THE STAGGERING OF WAGES AND PRICES: 215
• Hysteresis in Unemployment: 235
• Staggered Wage Setting in a Macro Model: 243
• The Allocation of Credit and Financial Collapse: 277
• Nonmonetary Effects of the Financial Crisis: 293
• Credit Money and Aggregate Demand: 325
• Price Rigidities and Market Structure: 377
• The Cyclical Behavior of Marginal Cost and Price: 417
• Contributors to Volume 2: 445

About the author

N. Gregory Mankiw is Professor of Economics at Harvard University. David Romer is Herman Royer Professor of Political Economy at the University of California, Berkeley.

Bibliographic information

• Title: New Keynesian Economics: Coordination failures and real rigidities, Volume 2; Volume 2 of MIT Press readings in economics; New Keynesian Economics, N. Gregory Mankiw; New Keynesian Economics: Imperfect Competition and Sticky Prices, N. Gregory Mankiw; New Keynesian economics: Coordination failures and real rigidities, N. Gregory Mankiw (Prof.); Volume 2 of Readings in Economics Series
• Editors: N. Gregory Mankiw, David Romer
• Edition: illustrated, reprint
• Publisher: MIT Press, 1991
• ISBN: 0262631342, 9780262631341
• Length: 466 pages
• Subjects: Business & Economics / Commerce; Business & Economics / Economics / General; Business & Economics / Economics / Theory; Business & Economics / Finance / General