Citation

Discussion Paper Details

Please find the details for DP9285 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

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

Author(s): Jordi Galí

Publication Date: January 2013

Keyword(s): employment stability, Monetary policy rules and Wage flexibility

Programme Area(s): International Macroeconomics

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.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9285

Bibliographic Reference

Galí, J. 2013. 'Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9285