Unemployment Fluctuations and Stabilization Policies: A New Keynesian Perspective



2011 | ISBN-10: 0262015978 | PDF | 120 pages | 3 MB

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.

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