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Hardcover | Out of Print | 464 pp. | 6 x 9 in | April 1991 | ISBN: 9780262132671
Paperback | $45.00 X | £34.95 | 464 pp. | 6 x 9 in | April 1991 | ISBN: 9780262631341
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New Keynesian Economics, Volume 2

Coordination Failures and Real Rigidities


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.N. Gregory Mankiw is Professor of Economics at Harvard University. David Romer is Associate Professor of Economics at the University of California at Berkeley.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.

About the Editors

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.


“These papers make a strong collective impression. I don't see how anyone could absorb them and just go back to frictionless competitive modelling.”
Robert M. Solow, Institute Professor, MIT
“This collection is exactly what the profession needs -- an expertly chosen set of fundamental articles laying out the modern approach to macroeconomics.”
Stanley Fischer, Professor of Economics, MIT