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Remaining Puzzles and Neglected Issues in Macroeconomics
Stockholm University, Faculty of Social Sciences, Institute for International Economic Studies.
1988 (English)Report (Other academic)
Abstract [en]

This paper analyses the "chain" of transmission mechanisms of economic policy actions to financial markets, output and employment and, finally, unemployment -- in an attempt to identify "remaining puzzles" and "neglected issues" in macroeconomics. The paper emphasizes the consequences of fiscal and monetary policy actions on real variables, including real interest rates and real exchange rates. An attempt is made to explain why product demand shocks often tend to have faster effects on output and employment than on prices. The paper also discusses why demand-induced increases in output and employment are not systematically connected with a "reduction" in the product wage rate. The paper ends with a discussion of various supply-side considerations in macroeconomics.

Place, publisher, year, edition, pages
Stockholm: IIES , 1988. , 38 p.
Series
Seminar Paper / Institute for International Economic Studies, Stockholm University, ISSN 0347-8769 ; 424
National Category
Economics
Identifiers
URN: urn:nbn:se:su:diva-41611OAI: oai:DiVA.org:su-41611DiVA: diva2:331585
Available from: 2010-07-23 Created: 2010-07-23 Last updated: 2010-07-23Bibliographically approved

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fulltext(5409 kB)54 downloads
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CiteExportLink to record
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Citation style
  • apa
  • ieee
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  • de-DE
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Output format
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