Vicarelli's Keynes and the New-Keynesian analytical method

This article provides a critical review of the foundations of the new Keynesian apparatus, to evaluate the actual strength of the Keynesian inheritance. As a reference of the Keynesian vision, Fausto Vicarelli’s recognition of the Keynesian message is adopted. The critical recognition of the new Keynesian methodology focuses on its analytical foundations, the recent extensions and on the criticality of its empirical performances and controls. The new Keynesian construction is shown to lack truly Keynesian roots in at least three key theoretical features: the role of the microfoundations, the stability of equilibrium, and expectations formation. The directions of an ongoing research narrowing the new Keynesian theoretical fracture from Keynesian economics are addressed.