Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment

Galí, Jordi
Authors registered in the RePEc Author Service: Jordi Galí

No 9285, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: I 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.

Keywords: Employment stability; Monetary policy rules; Wage flexibility (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
Date: 2013-01
New Economics Papers: this item is included in nep-hpe and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (34)

Downloads: (external link)
https://cepr.org/publications/DP9285 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment (2015)
Journal Article: NOTES FOR A NEW GUIDE TO KEYNES (I): WAGES, AGGREGATE DEMAND, AND EMPLOYMENT (2013)
Working Paper: Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9285

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP9285

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().