Keynesian economics dominated economic theory and policy after World War II until the 1970s, when many advanced economies suffered both inflation and slow growth, a condition dubbed “stagflation.” ...

This concept of equilibrium is motivated by unspecifiable differences in economic agents and the presence of all kinds of micro shocks in the macroeconomy. Our model mimics the empirically observed ...

Perhaps the greatest accomplishment of the Keynesian revolution (named for the late economist John Maynard Keynes) was that it provided a general equilibrium model capable of explaining the ...