IAMA, Lecture #14 New‐Keynesian Macroeconomics, I

Overview:
• Long-run monetary neutrality as anchor of New Keynesian macro
• Why might monetary neutrality fail? Evidence on sticky prices and wages
• Modeling sticky prices: Microeconomic basics and an overview of different approaches (Alogoskoufis, Ch 16)
• Modeling sticky prices: Some simple short cuts
- Rotemberg (1982) “costly price adjustment”
- Calvo (1983) - “staggered pricing”
by Prof. Burda
more helpful content:
www.youtube.com/@macronotes3647/videos
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