The Attempt to Revitalize Keynes' Theory
The article gives a summary of the renewal attempts of the only, through decades dominant general economic theory, the Keynesian economics. Because of the lack of microeconomic bases and the changes happened on the commodity-, labour-, and money markets of the modern economies, the Keynesian theory...
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| Format: | Article |
| Language: | English |
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University of Miskolc
2002-02-01
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| Series: | Theory, Methodology, Practice |
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| Online Access: | https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1303 |
| _version_ | 1797648380305866752 |
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| author | Zsuzsa Ortutay |
| author_facet | Zsuzsa Ortutay |
| author_sort | Zsuzsa Ortutay |
| collection | DOAJ |
| description |
The article gives a summary of the renewal attempts of the only, through decades dominant general economic theory, the
Keynesian economics. Because of the lack of microeconomic bases and the changes happened on the commodity-, labour-, and
money markets of the modern economies, the Keynesian theory cannot give any more explanations and directions for such
macroeconomic phenomena as the unemployment and the cyclic fluctuation of the economy, which the sensitivity of those living in
market economies has significantly grown to.
A very important recognition of the economic tendency called ‘new Keynesian’ is that the lack of perfect competition can
be blamed for the existence of economic cycles. The market imperfectness, which -from the number of competitors to the
imperfectness of the flow of information- can show many different faces, appears also in creation of microeconomic bases, where
the new Keynesian school can show important successes. From the article we can learn about the areas most often examined by the
new Keynesians: the most important models of real- and nominal inelasticity of prices and wages as well as the models of implicit
contracts existing in the form of long-term wage agreements, the menu costs, the rapid market externals, and the models of effective
wages. By surveying the models it can be established that the crowd of wide-ranging models elaborated by the new Keynesian
researchers does not make up a consistent theory. For the economists following in Keynes’s footsteps and searching the explanations
of the phenomena of economies operating with imperfect markets, the biggest challenge is the rethinking of the theory uniting the
microeconomic models.
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| first_indexed | 2024-03-11T15:31:23Z |
| format | Article |
| id | doaj.art-9eccf4c93b754228bf441aa47dfa699e |
| institution | Directory Open Access Journal |
| issn | 1589-3413 2415-9883 |
| language | English |
| last_indexed | 2024-03-11T15:31:23Z |
| publishDate | 2002-02-01 |
| publisher | University of Miskolc |
| record_format | Article |
| series | Theory, Methodology, Practice |
| spelling | doaj.art-9eccf4c93b754228bf441aa47dfa699e2023-10-27T04:14:09ZengUniversity of MiskolcTheory, Methodology, Practice1589-34132415-98832002-02-01101The Attempt to Revitalize Keynes' TheoryZsuzsa Ortutay0University of Miskolc The article gives a summary of the renewal attempts of the only, through decades dominant general economic theory, the Keynesian economics. Because of the lack of microeconomic bases and the changes happened on the commodity-, labour-, and money markets of the modern economies, the Keynesian theory cannot give any more explanations and directions for such macroeconomic phenomena as the unemployment and the cyclic fluctuation of the economy, which the sensitivity of those living in market economies has significantly grown to. A very important recognition of the economic tendency called ‘new Keynesian’ is that the lack of perfect competition can be blamed for the existence of economic cycles. The market imperfectness, which -from the number of competitors to the imperfectness of the flow of information- can show many different faces, appears also in creation of microeconomic bases, where the new Keynesian school can show important successes. From the article we can learn about the areas most often examined by the new Keynesians: the most important models of real- and nominal inelasticity of prices and wages as well as the models of implicit contracts existing in the form of long-term wage agreements, the menu costs, the rapid market externals, and the models of effective wages. By surveying the models it can be established that the crowd of wide-ranging models elaborated by the new Keynesian researchers does not make up a consistent theory. For the economists following in Keynes’s footsteps and searching the explanations of the phenomena of economies operating with imperfect markets, the biggest challenge is the rethinking of the theory uniting the microeconomic models. https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1303Keynesian economics |
| spellingShingle | Zsuzsa Ortutay The Attempt to Revitalize Keynes' Theory Theory, Methodology, Practice Keynesian economics |
| title | The Attempt to Revitalize Keynes' Theory |
| title_full | The Attempt to Revitalize Keynes' Theory |
| title_fullStr | The Attempt to Revitalize Keynes' Theory |
| title_full_unstemmed | The Attempt to Revitalize Keynes' Theory |
| title_short | The Attempt to Revitalize Keynes' Theory |
| title_sort | attempt to revitalize keynes theory |
| topic | Keynesian economics |
| url | https://ojs.uni-miskolc.hu/index.php/tmp/article/view/1303 |
| work_keys_str_mv | AT zsuzsaortutay theattempttorevitalizekeynestheory AT zsuzsaortutay attempttorevitalizekeynestheory |