Monetary Policy and the German Unemployment Problem in Macroeconomic Models

1. Front Matter

   Pages I-XX

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2. Introduction

   Pages 1-4

3. Keynesian and Monetarist Views on the German Unemployment Problem

   Pages 5-95

4. The Rational Expectations Revolution

   Pages 96-113

5. Monetary Policy in the New Keynesian Model

   Pages 114-170

6. Introducing Nonlinearities into the New Keynesian Model

   Pages 171-203

7. Revisiting the Natural Rate Hypothesis

   Pages 204-237

8. Concluding Remarks

   Pages 238-240

9. Back Matter

   Pages 241-287

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Having the high unemployment in Germany in mind, this book discusses how macroeconomic theory has evolved over the past forty years. It shows that in recent years a convergence has taken place, with modern models embodying a Keynesian transmission mechanism, monetarist policy implication, and modeling techniques inspired by new classical economics and real business cycle theory. It also probes in which direction models may be extended from here. Empirically, the book uses different econometric techniques to investigate the relevance and implications of different macroeconomic theories for German data. A key question this book investigates is the role of demand and supply side conditions for the increase in the German unemployment rate. On a policy level, the book relates the implications of the different theories to the ongoing debate on the appropriate roles of demand and supply side policies for curing the German unemployment problem.

• Applied Macroeconomics
• Business Cycle Research
• Employment
• Keynes
• economic theory
• monetary policy
• unemployment

• Washington DC

  Jan Gottschalk

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