Word.ws English Dictionary

divine coincidence

divine coincidence noun: the property of a (New Keynesian) macroeconomic model that stabilizing inflation and stabilizing the (relevant) output gap is equivalent.

Noun

divine coincidence (countable and uncountable, plural divine coincidences)

  1. The property of a (New Keynesian) macroeconomic model that stabilizing inflation and stabilizing the (relevant) output gap is equivalent.
    • In [the standard new Keynesian framework], stabilizing inflation is equivalent to stabilizing the welfare-relevant output gap. In this paper, we argue that this property of the new Keynesian framework, which we call the divine coincidence, is due to a special feature of the model […]2007, Oliver Blanchard and Jordi Galí, Real Wage Rigidities and the New Keynesian Model, Journal of Money, Credit and Banking 39(s1), pp. 35--65
    • Because credit shocks appear in the Phillips curve, the so-called divine coincidence […] does not hold, and it is not possible to achieve the global minimum of the loss function with just one policy instrument.2023, Eric Sims, Jing Cynthia Wu, and Ji Zhang, The Four-Equation New Keynesian Model, The Review of Economics and Statistics 105(4), pp. 931--947

Forms of divine coincidence

pluraldivine coincidences

Questions about divine coincidence

What does divine coincidence mean?
Divine coincidence means the property of a (New Keynesian) macroeconomic model that stabilizing inflation and stabilizing the (relevant) output gap is equivalent.
What part of speech is divine coincidence?
Divine coincidence is a noun.
What is the plural of divine coincidence?
The plural of divine coincidence is divine coincidences.

Words near divine coincidence in the dictionary

  1. divinators
  2. divinatory
  3. DiVincenzo
  4. DiVincenzos
  5. divine
  6. divine coincidence
  7. divine command theory
  8. divine intervention
  9. divine interventions
  10. divine law
  11. divine laws

Source and license

Adapted from Wiktionary: divine coincidence (page history and authors). Text available under the Creative Commons Attribution-ShareAlike 4.0 license. Word.ws reformatted the entry and added links. Wiktionary data of 2026-09-02.

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