This book aims to systematically develop a general equilibrium macroeconomic model for both closed and open economies. In the seventh edition, Chapter 8 (The Standard Model of Neo-Keynesian Macroeconomics) has been revised and expanded to include a section on the neo-Keynesian IS-LM model

The authors develop a simple agent-based and stock flow consistent model of a monetary economy. Their model is well suited to explain money creation along the lines of mainstream theory. Additionally it uncovers a potential instability that follows from a maturity mismatch of assets and...

The paper considers an elementary New-Keynesian three-equation model and compares its Bayesian estimation based on conventional priors to the results from the method of moments (MM), which seeks to match a finite set of the model-generated second moments of inflation, output and the interest...

This paper estimates a high-frequency New-Keynesian Phillips curve via the generalized method of moments. Allowing for higher-than-usual frequencies strongly mitigates the problems of small-sample bias and structural breaks. Applying a daily frequency allows us to obtain estimates for the Calvo...