Wages, government policy and unemployment
- In this paper we question the usefulness of what has become the new textbook orthodoxy — the 'new Keynesian' NAIRU theory. We then discuss the impact of the policy developments that follow from this orthodoxy, and argue that NAIRU theory has resulted in greater, not reduced, unemployment. Consequently, orthodox economic theory has added an upward twist to the stagnationist, high-unemployment ratchet.
- Publication status:
- Peer review status:
- Peer reviewed
- Publisher copy:
- Copyright holder:
- Edward Arnold
- Copyright date:
- N.B. Professor Michie was based at the University of Cambridge when this article was first published. The full-text of this article is not available in ORA at this time. Citation: Michie, J. & Wilkinson, F. (1995). 'Wages, government policy and unemployment', Review of Political Economy, 7(2), 133-149. [Available at http://www.informaworld.com/smpp/title~content=t713444532~db=all].
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