• Title of article

    How toreduceunemployment:Anewpolicyproposal

  • Author/Authors

    Roger E. A. Farmer، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2010
  • Pages
    16
  • From page
    557
  • To page
    572
  • Abstract
    This paperusesamodelwithacontinuumofequilibriumsteadystateunemployment ratestoexploretheeffectivenessoffiscalpolicy.Theexistenceofmultiplesteadystate equilibriaisexplainedbythepresenceofsearchandrecruitingcosts.Iusethemodelto explain thecurrentfinancialcrisisasashifttoahighunemploymentequilibrium, inducedbytheself-fulfillingbeliefsofmarketparticipantsaboutassetprices.Iasktwo questions.(1)Canfiscalpolicyhelpusoutofthecrisis?(2)Isthereanalternativeto fiscalpolicythatislesscostlyandmoreeffective?Theanswertobothquestionsisyes
  • Journal title
    Journal of Monetary Economics
  • Serial Year
    2010
  • Journal title
    Journal of Monetary Economics
  • Record number

    846412