The contribution of this paper is twofold. First, a thorough presentation of the state of the art of the New Keynesian Macroeconomic model is provided. A discussion of its empirical caveats follows and some recent extensions of the standard model are evaluated in more detail. Second, a key...

The great recession (2008) triggered an apparent discrepancy between empirical findings and macroeconomic models based on rational expectations alone. This gap led to a series of recent developments of a behavioral microfoundation of macroeconomics combined with the underlying experimental and...

The Paris Peace Conference was arguably the most complex negotiation ever undertaken. The principal product of the conference, the Treaty of Versailles, failed to accomplish any of the major goals of its framers. Relations between Allies and with the defeated enemies seriously deteriorated as a...

"Keynes' macroeconomic revolution is based on his microfoundations of economic behaviour derived from 'casual' observations but impressively substantiated by rigorous research in behavioural economics and neurology. Ronald Schettkat argues that the allegation of the missing microfoundations in...