This paper investigates the implications of budgetary policies for consumption and economic growth. We present a model … a rise in government debt, financed by lump-sum taxes, increases the share of private consumption to national income and … reduces the long-run growth rate. We also show that a rise in government consumption financed by lump-sum taxes reduces both …

and the unemployment rate in U.S. data since 1929. Second, it compares a new model of the economy developed in recent … fiscal stimulus will not permanently restore full employment. In Farmer’s model, as in the Keynesian model, employment is …

which there are multiple equilibrium unemployment rates. The model has two equations in common with the new-Keynesian model …

We extend the `rational-partisan' model of inflation to allow for the effects of unemployment persistence on the … to the failure of political parties to precommit to price stability, in the light of unemployment persistence. Elections … are associated with higher inflation, with the exception of the Thatcher period. There is no evidence that the Labour …

This paper uses a model with a continuum of equilibrium unemployment rates to explore the effectiveness of fiscal … situation of bilateral monopoly. Using this framework, I explain the current financial crisis as a shift to a high unemployment …

a permanent reduction in wealth and consumption and a permanent increase in the unemployment rate. My work suggests that …This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of …

recent differential unemployment persistence in our sample of countries: first, sluggishness in labour demand, and second …In this paper we present an investigation of unemployment persistence in Japan, the United States and fourteen European … economies. We concentrate on the sources of slow adjustment in the labour market, such as sluggishness in labour demand and …

We extend the `rational partisan model' of inflation and unemployment by introducing inflation and unemployment … stability. The greater aversion of `socialists' to unemployment results in an inflation rate which is higher by five percentage … points than under the more anti-inflationary `conservatives'. Unemployment seems to be independent of the identity of the …

unemployment rate. I show that the connection between changes in the stock market and changes in the unemployment rate has remained … unemployment. …

Central banks throughout the world predict inflation with new-Keynesian models where, after a shock, the unemployment …