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...

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...

This paper attempts to build a narrative on the developments of macroeconomics in the postwar period through the debates about the so called “natural rate of unemployment”. The definitions of the concept in the seminal papers of Milton Friedman (1968a) and Edmund Phelps (1967, 1968) and its...

Acceptance of computer modeling and experimentation has spread slowly at best in economics in large part because agent-based models often seem foreign to the neoclassical core of economics, as that core is understood today. But in its beginnings neoclassical economics was not built from choice...

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...

The concept of full employment is associated with diverse economic, political and social aspects. We provide a survey of theory, empirics and policy issues related to full employment. We make a novel contribution by tying together multi-dimensional aspects of full employment regarding...

This paper is based on the ideas of political philosopher John Rawls who suggested that a just society is one which would be created behind a "veil of ignorance", that is to say, without knowing where one would end up in the society's distribution of talent and other attributes valued in the...