Topic 3: New Keynesian Macroeconomics

Reading pack and lecture note is now available at the usual place:
http://groups.google.com/group/economaru/files
Solutions to Problem Set 1 have also been uploaded. Apologies for the delay!

The key readings are:
- Mankiw (1988) "Recent Developments in Macroeconomics: A Very Quick Refresher Course", JMCB
- Mankiw (1985) "Small Menu Costs and Large Business Cycles: A Macroeconomic Model of Monopoly", QJE
- Romer (1993) "The New Keynesian Synthesis", JEP

Other readings/recommendations:
- Journal of Economic Perspectives, Winter 1993 issue runs a special symposium on New Keynesian (Romer (1993) above is one of the articles). Some of the papers are also included in the reading pack.
- David Romer's book "Advanced Macroeconomics" is also a very useful source, especially the New Keynesian part in the chapter of Incomplete Nominal Adjustments.
- The big paper by Ball, Mankiw, Romer, Akerlof, Rose, Yellen, and Sims contains a very readable introduction and summary of the New Keynesian Macro, in the first 20 pages or so.