Imperfect Competition and the Keynesian Cross

14 Pages Posted: 6 Apr 2007 Last revised: 9 Jan 2022

See all articles by N. Gregory Mankiw

N. Gregory Mankiw

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: September 1987

Abstract

This paper presents a simple general equilibrium model in which the only non-Walrasian feature is imperfect competition in the goods market. The model is shown to exhibit various Keynesian characteristics. In particular, as competition in the goods market becomes less perfect, the fiscal policy multipliers approach the values implied by the textbook Keynesian cross.

Suggested Citation

Mankiw, N. Gregory, Imperfect Competition and the Keynesian Cross (September 1987). NBER Working Paper No. w2386, Available at SSRN: https://ssrn.com/abstract=977422

N. Gregory Mankiw (Contact Author)

Harvard University - Department of Economics ( email )

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