Notes for a New Guide to Keynes (I): Wages, Aggregate Demand, and Employment / Jordi Galí.

Format:

Book

Author/Creator:

Galí, Jordi.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w18651.

NBER working paper series no. w18651

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Notes for a New Guide to Keynes

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2012.

Summary:

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.

Notes:

Print version record

December 2012.