In the next years , Keynesian economics were thought of as less important after the publication of John Muth 's work called rational expectations . Phelps , with Calvo and John Taylor , started a program to rebuild Keynesian economics with new ideas about prices and wages being kept the same for certain time . Phelps , with Calvo and John Taylor , started a program to rebuild Keynesian economics with rational expectations by employing sticky wages and prices .