ABSTRACT
In the introduction to a symposium on New Keynesian economics, Mankiw describes the tasks that this strand of economics sets for itself in the following terms: ‘Like Keynes, new Keynesians begin with the premise that persistent unemployment and economic fluctuations are central and continuing problems: recessions and depressions represent market-failure on a grand scale’ (Mankiw, 1993, p.3). Whether fluctuations were a central concern for Keynes in The General Theory is arguable, but he certainly was deeply interested in unemployment and the ways to cure such a malady.
