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Technological Progress, the Real Exchange Rate, and the Natural Rate of Unemployment

Author

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  • Moore, M.P.

Abstract

This paper relates two canonical issues in macroeconomics: the effect of technological progress on the real exchange rate and the effect of technological progress on the natural rate of unemployment. In the context of a Ricardian model with traded and nontraded goods, I show that technological progress in tradables an nontradables can have dramatically different effects on unemployment rates, depending upon the structure of wage bargaining.

Suggested Citation

  • Moore, M.P., 2000. "Technological Progress, the Real Exchange Rate, and the Natural Rate of Unemployment," Papers 00-03, California Irvine - School of Social Sciences.
    • Handle: RePEc:fth:calirv:00-03
    as

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    More about this item

    Keywords

    TECHNOLOGY ; EXCHANGE RATE ; UNEMPLOYMENT;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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