The paper "The New Neoclassical Synthesis and the Role of Monetary Policy" by Marvin Goodfriend and Robert G. King discusses the evolution of macroeconomic thinking towards a New Neoclassical Synthesis (NNS), which combines Classical and Keynesian ideas. The authors highlight the key features of the NNS and its implications for monetary policy. They argue that the NNS rationalizes an activist monetary policy, particularly an inflation targeting regime, which aims to stabilize real economic activity over time. The paper addresses several operational aspects of inflation targeting, including its practicality, response to oil shocks, choice of price index, mandate design, and interest rate policy. The authors also review the historical context of macroeconomic thought, including the neoclassical synthesis, monetarism, and rational expectations, and discuss the Real Business Cycles (RBC) and New Keynesian models. They emphasize the importance of credibility in monetary policy and the role of monetary policy in controlling inflation and real activity. The paper concludes by summarizing the main findings and implications of the NNS for monetary policy.The paper "The New Neoclassical Synthesis and the Role of Monetary Policy" by Marvin Goodfriend and Robert G. King discusses the evolution of macroeconomic thinking towards a New Neoclassical Synthesis (NNS), which combines Classical and Keynesian ideas. The authors highlight the key features of the NNS and its implications for monetary policy. They argue that the NNS rationalizes an activist monetary policy, particularly an inflation targeting regime, which aims to stabilize real economic activity over time. The paper addresses several operational aspects of inflation targeting, including its practicality, response to oil shocks, choice of price index, mandate design, and interest rate policy. The authors also review the historical context of macroeconomic thought, including the neoclassical synthesis, monetarism, and rational expectations, and discuss the Real Business Cycles (RBC) and New Keynesian models. They emphasize the importance of credibility in monetary policy and the role of monetary policy in controlling inflation and real activity. The paper concludes by summarizing the main findings and implications of the NNS for monetary policy.