The State of New Keynesian Economics: A Partial Assessment
I provide an overview of recent developments in monetary economics, with an emphasis on extensions of the New Keynesian framework that assume a zero lower bound on the short term nominal rate, as well as models with household heterogeneity.
I am grateful for comments to Klaus Adam, Adrien Auclert, Davide Debortoli, Mark Gertler, Gordon Hanson, Greg Kaplan, Stephanie Schmitt-Grohé, and Tim Taylor. Christian Höynck and Cristina Manea provided excellent research assistance. I have benefited from the financial support of the Generalitat de Catalunya (AGAUR Grant 2017SGR1393) and the Ministerio de Economía, Industria y Competitividad (Grant ECO2017-87827). The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.
Jordi Galí, 2018. "The State of New Keynesian Economics: A Partial Assessment," Journal of Economic Perspectives, vol 32(3), pages 87-112. citation courtesy of