Greg Mankiw: Difference between revisions
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#* His work supports '''central bank interventions''' and active '''government policies''' during recessions. | #* His work supports '''central bank interventions''' and active '''government policies''' during recessions. | ||
# '''Textbook Influence''' | # '''Textbook Influence''' | ||
#* Mankiw's macroeconomics textbooks popularized '''New Keynesian ideas''', making them mainstream in economic education. | #* Mankiw's macroeconomics textbooks popularized '''New Keynesian ideas''', making them mainstream in economic education. One of his important textbooks is [https://archive.org/details/n.-gregory-mankiw-principles-of-economics-cengage-2024/mode/2up Principles of Economics]. | ||
[[Category:Economists]] | [[Category:Economists]] | ||
[[Category:Keynesian Economics]] | |||
Latest revision as of 10:49, 16 March 2025
Gregory Mankiw, was a leading New Keynesian, and contributed primarily through his work on menu costs and sticky prices:
- Menu Cost Theory
- Mankiw’s research showed that even small costs of changing prices (like reprinting menus) can lead to price stickiness, which disrupts market equilibrium and slows economic recovery.
- This helps explain why firms do not continuously adjust prices in response to demand changes.
- Macroeconomic Policy Implications
- Since prices and wages adjust slowly, monetary and fiscal interventions are needed to stabilize output and employment.
- His work supports central bank interventions and active government policies during recessions.
- Textbook Influence
- Mankiw's macroeconomics textbooks popularized New Keynesian ideas, making them mainstream in economic education. One of his important textbooks is Principles of Economics.