NAIRU, Unemployment and Post Keynesian Economics
AbstractThe purpose of this paper is to present the disadvantages from the use of NAIRU as the key instrument of monetary-policy making to restrain the upward tendency of unemployment. It argues that the development of NAIRU, the most widely known and used model in macroeconomic analysis, although has changed the whole structure of macroeconomic theory and policy significantly, its adoption is consistent with unemployment, instead of economic activity expansion. By setting at the center of analysis the persistently high levels of unemployment and questioning the NAIRU concept itself, this paper aims at signifying the incorrectness of the assumptions upon which NAIRU rests and determines employment policies, though are regarded as a priori given.
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Bibliographic InfoPaper provided by University of Crete, Department of Economics in its series Working Papers with number 1105.
Length: 18 pages
Date of creation: 02 Dec 2011
Date of revision:
NAIRU; Unemployment; Capital; Capacity Utilization; Post Keynesian-Kaleckian economics;
Find related papers by JEL classification:
- E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Capital; Investment; Capacity
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
- NEP-MAC-2011-12-13 (Macroeconomics)
- NEP-PKE-2011-12-13 (Post Keynesian Economics)
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