Money-Wage Dynamics and Labor-Market Equilibrium

@article{Phelps1968MoneyWageDA,
  title={Money-Wage Dynamics and Labor-Market Equilibrium},
  author={Edmund S. Phelps},
  journal={Journal of Political Economy},
  year={1968},
  volume={76},
  pages={678 - 711}
}
  • E. Phelps
  • Published 1 July 1968
  • Economics
  • Journal of Political Economy
This chapter discusses money-wage dynamics and labor-market equilibrium. A generalized excess-demand theory of the rate of change of the average money-wage rate has been developed for frictional labor markets that allocate heterogeneous jobs and workers without having perfect information and market clearance by auction. There are two explanatory variables: the vacancy rate and the unemployment rate. The unemployment rate and the rate of change of employment are shown to be joint proxies for the… Expand
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  • E. Phelps
  • Economics
  • Journal of Political Economy
  • 1965
Mundell's analysis refers only to an exogenous expectation of inflation to which the government makes no fiscal or monetary response. Using a Metzler-like model having fiscal and monetary controlsExpand
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