How to reduce unemployment: A new policy proposal
成果类型：
Article; Proceedings Paper
署名作者：
Farmer, Roger E. A.
署名单位：
University of California System; University of California Los Angeles
刊物名称：
JOURNAL OF MONETARY ECONOMICS
ISSN/ISSBN：
0304-3932
DOI：
10.1016/j.jmoneco.2010.05.005
发表日期：
2010
页码：
557-572
关键词：
摘要：
This paper uses a model with a continuum of equilibrium steady state unemployment rates to explore the effectiveness of fiscal policy. The existence of multiple steady state equilibria is explained by the presence of search and recruiting costs. I use the model to explain the current financial crisis as a shift to a high unemployment equilibrium, induced by the self-fulfilling beliefs of market participants about asset prices. I ask two questions. (1) Can fiscal policy help us out of the crisis? (2) Is there an alternative to fiscal policy that is less costly and more effective? The answer to both questions is yes. (C) 2010 Elsevier B.V. All rights reserved.
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