The aim of the paper is to compare the NAIRU hypothesis regarding ­European unemployment and a Keynesian approach to … rise of European unemployment, for a Keynesian approach it is capital accumulation that is key. The theories are tested …). Unemployment benefits, union density and the tax wedge are used as wage push variables, and the growth of business capital stock as …

This paper shows that Pigou’s theory of unemployment, contrary to what Keynes thought, does not assume states of full … determination of mass unemployment, although Pigou was very cautious as regards the feasibility of demand policies as a means for … achieving full employment. The modern theory of the natural rate of unemployment, as empirically developed in the context of the …

This paper shows that Pigou’s theory of unemployment, contrary to what Keynes thought, does not assume states of full … determination of mass unemployment, although Pigou was very cautious as regards the feasibility of demand policies as a means for … achieving full employment. The modern theory of the natural rate of unemployment, as empirically developed in the context of the …

In Keynes' General Theory, investment determines effective demand, which determines unemployment and the labour market … plays a negligible role. In New Keynesian models, labour market institutions determine the natural rate of unemployment and … the speed at which unemployment adjusts to it. Investment is mostly ignored as a key variable behind the problem of high …