Wages Behaviour and Unemployment in Keynes and New Keynesians Views. A Comparison

Nicola Meccheri ()

Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy

Abstract: The paper compares different strands of New Keynesian Economics with respect to Keynes's original work on wages, describing which are the most relevant differences and analogies. In particular, two issues are analysed in detail. First, the explanations provided by Keynes and New Keynesians of nominal and real wages behaviour. Second, the different theories and interpretations concerning the ability of flexible nominal wages in assuring full employment in the economy. It is argued that, although persistent involuntary unemployment is acentral and continuing problem both in Keynes and New Keynesians views, referring to the role of nominal and/or real wages behaviour in explaining unemployment, New Keynesian theories present features which differ, sometimes substantially, from the ideas and concepts developed by Keynes in his General Theory.

Keywords: Keynes; New Keynesian Economics; Wages; Unemployment (search for similar items in EconPapers)
JEL-codes: B20 B40 E12 E24 (search for similar items in EconPapers)
Date: 2004-01-01
Note: ISSN 2039-1854
References: Add references at CitEc
Citations: View citations in EconPapers (12)

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Related works:
Journal Article: Wage behaviour and unemployment in Keynes' and New Keynesians' views: A comparison (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2004/41

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