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

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

No 662, Working Papers from Barcelona School of Economics

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: monetary policy rules; wage flexibility; employment stability (search for similar items in EconPapers)
JEL-codes: E32 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-hpe and nep-mac
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Related works:
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 (2013)
Working Paper: Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment (2012)
Working Paper: Notes for a new guide to Keynes (I): Wages, aggregate demand, and employment (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:bge:wpaper:662

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