Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment
AbstractI revisit the General Theory's discussion of the role of wages in employment determination through the lens of the New Keynesian model. The analysis points to the key role played by the monetary policy rule in shaping the link between wages and employment, and in determining the welfare impact of enhanced wage flexibility. I show that the latter is not always welfare improving.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 662.
Date of creation: Sep 2012
Date of revision:
wage flexibility; monetary policy rules; employment stability;
Find related papers by JEL classification:
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-13 (All new papers)
- NEP-HPE-2012-10-13 (History & Philosophy of Economics)
- NEP-MAC-2012-10-13 (Macroeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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