Our claim is that in a purely free enterprise system, there can be no such thing as involuntary unemployment, as long …

We propose a monetary model in which the unemployed satisfy the official U.S. definition of unemployment: people …, unemployment is involuntary). We integrate our model of involuntary unemployment into the simple new Keynesian framework with no … capital and use the resulting model to discuss the concept of the nonaccelerating inflation rate of unemployment. We then …

We analyze involuntary unemployment based on consumers’ utility maximization and firms’ profit maximization behavior … of involuntary unemployment in that model with ongoing mominal wage rate decline (or deflation). Even if the nominal wage … rate declines, we have a steady state with involuntary unemployment and constant output and employment. We need budget …

We show the existence of involuntary unemployment based on consumers’ utility maximization and firms’ profit … seigniorage) to achieve full-employment under a situation with involuntary unemployment. Under constant prices we show the …-employment from a state with involuntary unemployment, we need budget deficit (Proposition 1). 2) If the full-employment state has …

mobility, while unemployment increases in the country with labor market rigidities, reducing welfare. We also find that taste …

monetary model in which: i) the unemployed are worse o§ than the employed, i.e. unemployment is involuntary and ii) the labor … technology shocks. In addition, the model does well at accounting for the response of the labor force and unemployment rate to …