Financial Constraints and Market Failures – The Microfoundations of New Keynesi…

Financial Constraints and Market FailuresThe Microfoundations of New Keynesian Macroeconomics\nAuthor(s): Marcello Messori\nFormat: Hardback\nPublisher: Edward Elgar Publishing Ltd, United Kingdom\nImprint: Edward Elgar Publishing Ltd\nISBN-13: 9781858986258, 978-1858986258\nSynopsis\nThis innovative book shows how new Keynesian economics has reacted to the challenges of new classical economics. It argues that new Keynesian economists have responded positively to the challenge and strengthened the analytical power of their [url] first part of the book offers a critical reconstruction of the two crucial strains developed in new Keynesian economics. Firstly, the analysis of nominal and real rigidities based on imperfect competition in markets and secondly the analysis of capital market imperfections based on information asymetries. The authors argue that the constraints and market failures of new Keynesian models need to be specified. In the second part they focus on the financial c.