The Right Combination of Demand and Supply Policies: The Case for a Two-Handed Approach / Willem H. Buiter.

Format:

Book

Author/Creator:

Buiter, Willem H.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w2333.

NBER working paper series no. w2333

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

The Right Combination of Demand and Supply Policies

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1987.

Summary:

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.

Notes:

Print version record

August 1987.