In the 1980s, economic policies based on New Classical and Monetarist theories failed to reduce unemployment as expected. This led to a resurgence of Keynesian economics, known as the "Counter Counter-Revolution." New Keynesians, like Blinder and Mankiw, aimed to provide microeconomic foundations for Keynesian ideas by focusing on imperfect competition, wage and price inflexibility, and market coordination issues. Their approach highlighted the importance of these factors in understanding economic fluctuations and unemployment.