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From Full Employment to the Natural Rate of Unemployment: A Survey

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Author Info
Thierry Warin ()

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Abstract

On its face, unemployment seems to be a concept easy to grasp. But when one looks closer, the intricacies are numerous and assump-tions are multiple. Nowadays, the New Classical School is a bit closer to New Keynesianism than ever before. It still has a strong footprint in Monetarism, since in the long run, there is no interest in stabilizing an economy. But unlike the Classical school, the New Classical School concedes that in the short run things are much more complicated. If Keynes was right when he said, “in the long run, we are all dead,” one may even conclude that the New Classi-cal School is far more Keynesian than it first appears.

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Publisher Info
Paper provided by Middlebury College, Department of Economics in its series Middlebury College Working Paper Series with number 0601.

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Length: 26 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:mdl:mdlpap:0601

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Related research
Keywords: full employment; underemployment; unemployment; natural rate hypothesis; natural rate of unemployment;

Find related papers by JEL classification:
E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
N0 - Economic History - - General

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