NEW NEOCLASSICAL SYNTHESIS MODEL: APPLICATION TO TURKEY

39712

In the last thirty years, developments of macroeconomy come around a new consensus between economic schools. The consensus join Classical and Keynesian ideas below same framework and advice macroeconomic fluctuations can explain via microeconomy. Both classical and Keynesian contributions are compatible in the New Neoclassical Synthesis framework because of its microeconomic foundations. Different names are exploited for the new consensus, but in general it is called the New Neoclassical Synthesis. Inflation targeting composed the core of the New Neoclassical Synthesis which is accepted for price stability. Inflation targeting is established through short run interest rate. This study analyses success of the New Neoclassical Synthesis model which is a dynamic stochastic general equilibrium model with simultaneous equations systems solution which applied three stage least squares method.

131

New Neoclassical Synthesis Model , IS Equation , Taylor Rule , Phillips Curve , Three Stage Least Squares

The International Journal Of Economic and Social Research

157

The International Journal Of Economic and Social Research