About this document
New Keynesian Model Overview by dayan is a document available to read on EtoBox.
This document provides an overview of the foundations of the basic New Keynesian model without capital. It outlines the model, which includes households, final good firms, and intermediate good firms. It then derives the equilibrium conditions and household/firm first-order conditions. The key aspects summarized are consumption smoothing behavior by households, final goods production using a Dixit-Stiglitz function, and intermediate goods production with Calvo price setting by monopolists.
- Author
- dayan
- Language
- EN