In the non-linear form of the standard New-Keynesian model, however, the absence of extra real rigidities is not a critical issue.
12.
The New neoclassical synthesis essentially combined the dynamic aspects of RBC with imperfect competition and nominal rigidities of new Keynesian models.
13.
Recently, it was shown that the divine coincicidence does not necessarily hold in the non-linear form of the standard New-Keynesian model.
14.
Recently, it was shown that the divine coincidence does not necessarily hold in the non-linear form of the standard New-Keynesian model.
15.
Further, while some macroeconomists believe that New Keynesian models are on the verge of being useful for quarter-to-quarter quantitative policy advice, disagreement exists.
16.
Keynesian models recommend government interventions designed to increase demand for workers; these can include financial stimuli, publicly funded job creation, and expansionist monetary policies.
17.
In Keynesian models the identity between savings and investments is generated by the investment who determines income and by this the savings in the economy.
18.
Although the model was first used to model wage setting, in new Keynesian models that followed it was also used to model price-setting by firms.
19.
This culminated in the three equation new Keynesian model found in the survey by Richard Clarida, Jordi Gali, and dynamic consumption equation ( household's Euler equation ).
20.
New Keynesian models investigated sources of sticky prices and wages due to imperfect competition, which would not adjust, allowing monetary policy to impact quantities instead of prices.
