Unemployment Fluctuations and Stabilization Policies: A New Keynesian Perspective (2010)
by
Jordi Galí
| Citations: | 18 - 4 self |
BibTeX
@MISC{Galí10unemploymentfluctuations,
author = {Jordi Galí},
title = {Unemployment Fluctuations and Stabilization Policies: A New Keynesian Perspective},
year = {2010}
}
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Abstract
I develop a version of the standard New Keynesian model for which a concept of unemployment can be defined. The resulting framework is shown to account reasonably well for the observed properties of unemployment fluctuations. That framework is also used to construct unemployment-based measures of the output gap, which are compared with more conventional measures. Finally, I study the gains from having the central bank respond systematically to the unemployment rate, in addition to other variables.
