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Unemployment Fluctuations and Stabilization Policies
Author: Jordi Gali

ISBN: 9780262015974
Format: Hardcover
Number Of Pages: 120
Published: 26 May 2011
Country of Publication: US
Dimensions (cm): 22.9 x 15.2 x 0.8
Description:


The past fifteen years have witnessed the rise of the New Keynesian model as a framework of reference for the analysis of fluctuations and stabilization policies. That framework, which combines the rigor and internal consistency of dynamic general equilibrium models with such typically Keynesian assumptions as monopolistic competition and nominal rigidities, makes possible a meaningful, welfare-based analysis of the effects of monetary policy rules. But the conspicuous absence of unemployment from the standard New Keynesian model has given rise to both criticism and attempts to rectify this anomaly. In this book, Jordi Gal¡, one of the major contributors to the New Keynesian literature, offers a new approach to introducing unemployment into that framework. Gal¡'s approach involves a reinterpretation of the labor market in the standard New Keynesian model with staggered wage setting (rather than a modification or extension of the model, as has been pro...

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