This paper was written for the “Dialogue between Micro- and Macroeconomics Conference” held in Bern in 2010. I would like to thank Chris House, Virgiliu Midrigan, and Mark Gertler for helpful discussions, and one anonymous referee for valuable comments. This research was supported by the National Science Foundation under grant no. SES-0648545.
A Survey of New Keynesian Theories of Aggregate Supply and Their Relation to Industrial Organization
Article first published online: 20 JUL 2011
© 2011 The Ohio State University
Journal of Money, Credit and Banking
Volume 43, Issue Supplement s1, pages 87–110, August 2011
How to Cite
LEAHY, J. (2011), A Survey of New Keynesian Theories of Aggregate Supply and Their Relation to Industrial Organization. Journal of Money, Credit and Banking, 43: 87–110. doi: 10.1111/j.1538-4616.2011.00411.x
- Issue published online: 20 JUL 2011
- Article first published online: 20 JUL 2011
- Received September 2, 2010; and accepted in revised form November 3, 2010.
- New Keynesian;
- price stickiness;
- aggregate supply;
- strategic complementarity;
- industrial organization
I survey the recent literature on the Phillips curve. Along the way, I will try to relate this literature to topics of interest to industrial organization. I will also point out the gaps in our understanding and places where more careful micro-economic analysis would be helpful to macroeconomists. In the conclusion, I summarize what an industrial organization economist might take away from this literature.