There may be both a high and a low inflation equilibrium when the government finances the deficit through seigniorage. Under rational expectations, the high inflation equilibrium is stable and the low inflation equilibrium unstable; under adaptive expectations or lagged adjustment of money...

The paper analyzes the change in unemployment in 12 OECD countries over the period 1970-83 in terms of underlying aggregate supply and demand shifts. Earlier evidence on wage gaps (given by Brunoand Sachs) is revised and extended. For most European countries a process of reduction in gaps is...

The paper surveys the macroeconomic literature of the last decade with emphasis on the implications of the New Classical and Rational Expectations critiques for the Keynesian paradigm and the role of macro policies. This is done on the background of the main macro developments of the l970'a and...