EconPapers    
Economics at your fingertips  
 

The Right Combination of Demand and Supply Policies: The Case for a Two-Handed Approach

Willem Buiter

No 2333, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: The paper considers the analytical underpinnings of the scope for and limits of demand and supply management. After restating a general policy effectiveness result for New-Classical macroeconomic models, several non-Walrasan equilibrium models are considered. These use the efficiency wage hypothesis to generate equilibrium unemployment in the labor market and imperfect competition in the goods market to generate scope for demand management. Hysteresis models of the natural rate are also reviewed briefly. Tentative implications are drawn for the contributions of demand and supply management to the resolution of the European unemployment problem.

Date: 1987-08
Note: ME
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published as Buiter, "The Right Combination of Demand and Supply Policies: The Case for a Two-Handed Approach," in Macro and Micro Policies for More Growth and Employment," ed. by H. Muller-Groeling, Kiel, West Germany: Kiel Institute of World Economics, 1988.

Downloads: (external link)
http://www.nber.org/papers/w2333.pdf (application/pdf)

Related works:
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:nbr:nberwo:2333

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w2333

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2025-03-19
Handle: RePEc:nbr:nberwo:2333