in favor of either workers or entrepreneurs, the system does not fully accomplish the transition and unemployment might …

This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of … capital may be unbounded above. I argue that this property is an important feature of any rational-agent explanation of a … financial crisis as a large negative self-fulfilling shock to the expectation of the future price of capital. This shock causes …

This paper argues that the natural rate of unemployment hypothesis, in which equilibrium unemployment is determined by …, equilibrium unemployment is haunted by hysteresis. The curious history of the natural rate hypothesis is considered, curious … evidence regarding hysteresis effects on output and unemployment is then reviewed. …

This paper restates the post-Keynesian view of unemployment within a NAIRU framework. In the short run, the private …, the NAIRU will be endogenous because of the social norm character of wage setting and the supply-side effects of capital … accumulation. Capital investment rather than labour market institutions is the crucial variable that explains changes in …

evidence for a reaction of wage growth to unemployment and productivity growth. The degree of real wage flexibility tends to be … in real wage flexibility and unemployment may be related to differences in the wage bargaining institutions. …

We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory … generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise …-run unemployment over the 1980s and its rise during the late 2000s. …

growth model with capital mobility that emphasizes a link between wages, savings and growth. We identify the conditions on … the emergence of national unemployment due to minimum wages. Interestingly, differences in national savings propensities …