Is there any article or paper that describes what Thomas Sargent thinks of New Keynesian economics/models?

I am asking this question, because we all know what Thomas Sargent thinks of Old Keynesian economics, but I can't find what he thinks of New Keynesians that involve sticky price (well, Calvo/Rotemberg/etc. methods) and imperfect competition.


1 Answer 1


This journal article (Oct 29-2011,) has parts from a telephone conversation of the journalist with Sargent:


Although none of it mentions "New-Keynsian", there are some interesting points, like

"Professor Sargent said he felt insulted by people who call him “non-Keynesian” or “right wing,” terms that, he said, are based on a misunderstanding of his thinking... He’s a Democrat, he said, “a fiscally conservative, socially liberal Democrat,” adding, “I think that budget constraints are really central.”"

On Keynes?

"The “non-Keynesian” label irks him particularly. “That’s just off base,” he said. “Keynes was a very good economist. He was brilliant. He had wonderful insights. His work has inspired me many times.”"

So are we to believe that Sargent is a "Keynesian"?

"Today, Professor Sargent says that in some ways he actually is a Keynesian, but he qualified that claim, too. “I’m happy to say I am a Harrison-Kreps-Keynesian,” he said, citing work by two scholars at Stanford, J. Michael Harrison and David M. Kreps. They developed a theory of speculative investor behavior and stock-bubble formation that subtly modifies rational expectations “in a beautiful way” and “captures Keynes’s argument, makes it rigorous, and pushes it further,” he said."


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