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New-Keynesian economics: An AS–AD view

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  • Benigno, Pierpaolo
Abstract
A simple New-Keynesian model is set out with AS–AD graphical analysis. The model is consistent with modern central banking, which targets short-term nominal interest rates instead of money supply aggregates. This simple framework enables us to analyze the economic impact of productivity or mark-up disturbances and to study alternative monetary and fiscal policies.

Suggested Citation

  • Benigno, Pierpaolo, 2015. "New-Keynesian economics: An AS–AD view," Research in Economics, Elsevier, vol. 69(4), pages 503-524.
    • Handle: RePEc:eee:reecon:v:69:y:2015:i:4:p:503-524
    DOI: 10.1016/j.rie.2015.07.005
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    3. Ferrari, Alessandro & Landi, Valerio Nispi, 2022. "Will the green transition be inflationary? Expectations matter," Working Paper Series 2726, European Central Bank.
    4. L. Lambertini & L. Marattin, 2014. "Adjustment to Equilibrium after a Demand Shock: A Strategic Interaction View," Working Papers wp952, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Gerhard Illing & Thomas Siemsen, 2014. "Forward Guidance in a Simple Model with a Zero Lower Bound," CESifo Working Paper Series 4702, CESifo.
    6. Callum Jones & Mariano Kulish, 2016. "A graphical representation of an estimated DSGE model," Applied Economics, Taylor & Francis Journals, vol. 48(6), pages 483-489, February.
    7. Cukierman, Alex, 2015. "The choice of flexibility in targeting inflation during normal times and during disinflations," Research in Economics, Elsevier, vol. 69(4), pages 494-502.
    8. Gerhard Illing & Thomas Siemsen, 2016. "Forward Guidance at the Zero Lower Bound in a Model of Price-Level Targeting," CESifo Economic Studies, CESifo Group, vol. 62(1), pages 47-67.
    9. Pavel Potužák, 2018. "Price Level Stabilization: Hayek contra Mainstream Economics," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(4), pages 449-478.
    10. Pragidis, I.C. & Tsintzos, P. & Plakandaras, B., 2018. "Asymmetric effects of government spending shocks during the financial cycle," Economic Modelling, Elsevier, vol. 68(C), pages 372-387.
    11. Pedro J. Gutiérrez-Diez & Tibor Pál, 2023. "Monetary policy models: lessons from the Eurozone crisis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-19, December.
    12. Krzysztof Beck & Jakub Janus, 2013. "Aggregate Demand Disturbances in the Visegrad Group and the Eurozone," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 1(3), pages 7-19.
    13. repec:prg:jnlpep:v:preprint:id:668:p:1-30 is not listed on IDEAS
    14. Bernd Kempa, 2018. "Taylor Rule Reaction Coefficients And Real Exchange Rate Persistence," Bulletin of Economic Research, Wiley Blackwell, vol. 70(1), pages 64-73, January.
    15. Daniel Velázquez Orihuela & Diana Xóchitl González Gómez, 2016. "Impuestos y deuda pública: una relación paradójica," Revista Facultad de Ciencias Económicas, Universidad Militar Nueva Granada, vol. 24(2), pages 7-28, October.

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    More about this item

    Keywords

    Aggregate supply; Aggregate demand; Stabilization Policies; Inflation Targeting; Debt Deleveraging; Liquidity trap;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General

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