New Keynesian Economics: A Monetary Perspective by Stephen D. Williamson
John Maynard Keynes published his famous General Theory of Employment, Interest, and Money in 1936. The book has been highly influential and has led subsequent generations of economists to revise the Keynesian framework as new theory and data emerge, giving rise to “New Keynesian Economics.” In the latest issue of the Federal Reserve Bank of Richmond’s Economic Quarterly, Stephen Williamson of Washington University and a visiting scholar at the Bank evaluates the overall success of the New Keynesian project. He concludes that “typical New Keynesian models ignore credit markets, monetary frictions, and banking and are, therefore, of little or no use” in addressing some of the most pressing questions facing monetary economists and central bankers. But he believes that, given recent developments in the profession, “a comprehensive theory of central banking is certainly within our grasp.”
You can find the full text of this article and others in the latest issue of Economic Quarterly at:
Also in the Summer 2008 issue:
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