Success and failure of monetary policy since the 1950s / David Laidler -- What have economists learned over the past 50 years? / Lars E.O. Svensson -- Will monetary policy become more of a science? / Frederic S Mishkin -- Monetary policy, labour markets and fiscal policy / Olivier Blanchard.

This paper upholds the classical Keynesian position that a laissez-faire market economy lacks a spontaneous tendency to full employment. Focusing on the UK case, it argues that monetary policy could not prevent the economic collapse of 2008-9 or achieve full recovery from the Great Recession...

We present and discuss the simple search and matching model of the labor market against the background of developments in modern macroeconomics. We derive a simple representation of the model in a general equilibrium context and how the model can be used to analyze various policy issues in...