The book presents a disequilibrium approach to employment, inflation and growth in modern macroeconomics. It integrates markets of products and money, and labor markets into a consistent macrodynamic framework which contains a complete set of agents and markets. The framework allows to establish...

This paper studies the role of endogenous producer entry and product creation for monetary policy analysis and business cycle dynamics in a general equilibrium model with imperfect price adjustment. Optimal monetary policy stabilizes product prices, but lets the consumer price index vary to...