New economic models explain unemployment, business cycles, and fiscal policy effectiveness.
The article discusses how new economic theories based on imperfect information can explain many of the concepts originally proposed by Keynes. These theories show how factors like wages, credit, and financial markets can lead to unemployment, business cycles, and the effectiveness of monetary policies. By incorporating both macro and micro-economic analysis, these models provide a more comprehensive understanding of economic phenomena than traditional Keynesian or new classical approaches.