"Of course the Keynesians did not sit still for these developments. They recognized and accepted many of the counterarguments made by Friedman and the New Classicals. However, the general strategy of the socalled New Keynesians was to point out that various informational limitations and rigidities inherent in real-world markets prevent markets from achieving the equilibria that the New Classical models were built upon. As a result, argued the New Keynesians, government intervention might improve upon the free market by virtue of government's supposedly superior information and ability to take advantage of those rigidities and push the economy closer to that equilibrium. So New Keynesians share many of the same underlying assumptions as the New Classicals, they simply believe that in some (if not many) cases markets alone are unable to reach the equilibrium that the New Classicals believe they can."
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Steven Horowitz, "Thinking Carefully About Macroeconomics: Defenders of the Market Should Understand Fundamental Issues in Macroeconomics," The Freeman (1 December 1995).
https://en.wikiquote.org/wiki/New_classical_macroeconomics
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New classical macroeconomics
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