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Pro-Keynesian and Counter-Keynesian Implications of the ‘Structuralist’ Theory of Unemployment and Interest under the Classic Two-Sector View of Capital and Production

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Taxation in the United States and Europe

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Abstract

My recent work is directed toward a distinctive new paradigm that has been taking shape in the macroeconomic literature for more than a dozen years: a modern micro-macro theory of the simultaneous determination of the natural rate of unemployment and the natural rate of interest over time. It is a theory of how the equilibrium path — meaning the correct-expectations path — of the unemployment rate and the other real variables is disturbed by real demand and real supply shocks in the various markets.

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Authors
  1. Edmund S. Phelps
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Editors and Affiliations

  1. University of Nijmegen, The Netherlands

    Anthonie Knoester (Professor of Economics, Professor of Economic Policy) (Professor of Economics, Professor of Economic Policy)

  2. Erasmus University, Rotterdam, The Netherlands

    Anthonie Knoester (Professor of Economics, Professor of Economic Policy) (Professor of Economics, Professor of Economic Policy)

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© 1993 Confederation of European Economic Associations

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Phelps, E.S. (1993). Pro-Keynesian and Counter-Keynesian Implications of the ‘Structuralist’ Theory of Unemployment and Interest under the Classic Two-Sector View of Capital and Production. In: Knoester, A. (eds) Taxation in the United States and Europe. Confederation of European Economic Associations Conference Volumes. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-22884-3_4

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