The "natural rate hypothesis" is usually ascribed to ideas put forward by M. Friedman and E. Phelps between 1966 and 1968. It postulates that changes in nominal aggregate demand affect aggregate output because agents cannot temporarily distinguish relative from general price movements when they...

Das Papier untersucht die makroökonomischen Determinanten der Arbeitslosigkeit. Dabei werden die Argumente neoklassisch-monetaristischer, neukeynesianischer und postkeynesianischer Provinienz auf ihren Gehalt sowohl theoretisch wie empirisch überprüft. Das Hauptgewicht der Analyse wird auf...

New-Keynesian macroeconomic models typically assume that any long-run trade-off between inflation and unemployment is ruled out. While this appears to be a reasonable characterization of the US economy, it is less clear that the natural rate hypothesis necessarily holds in a European country...

Persistently high unemployment rates in Germany have led to a long-running controversy on the causes of the unemployment problem. This paper aims to re­view the contribution of Keynesian and monetarist theories to this controversy and explores empirically their implications for the explanation...

Most macroeconomic models employ sticky wages to generate unemployment. Herbert Simon however thought Schumpeterian micro processes can generate unemployment without wage stickiness. This paper develops Simon's thesis. Unemployment emerges due to the heightening of uncertainty and the consequent...

Unemployment represents one of the major problems in modern economies. In order to create appropriate measures for its reduction, it is necessary to know the exact relationship between the NAIRU (Non-Accelerating Inflation Rate of Unemployment) and the actual unemployment rate. Therefore, this...

This note discusses Modigliani's and Sylos Labini's unemployment theory starting from a long letter Modigliani wrote to his friend and colleague, commenting the provisional edition of “Oligopolio e Progresso Tecnico” (1956). While in his influential article review (1958) Modigliani...

In recent years, unemployment has become a major problem in many countries. The fluctuations of the unemployment rate as well as its persistence in some countries impose challenges to economic policy makers. In order to implement appropriate policy measures, it is necessary to know the exact...

This paper examines the relationship of unemployment rates with other macroeconomic aggregates in Bangladesh over 1991-2019 using robust econometric analyses. It sheds a light on the fact that GDP growth rate, inflation, and foreign direct investment flows have statistically significant impacts...