Unemployment Fluctuations and Stabilization Policies: A New Keynesian Perspective

@inproceedings{Gal2011UnemploymentFA,
  title={Unemployment Fluctuations and Stabilization Policies: A New Keynesian Perspective},
  author={Jordi Gal{\'i}},
  year={2011}
}
The past fifteen years have witnessed the rise of the New Keynesian model as a framework of reference for the analysis of fluctuations and stabilization policies. That framework, which combines the rigor and internal consistency of dynamic general equilibrium models with such typically Keynesian assumptions as monopolistic competition and nominal rigidities, makes possible a meaningful, welfare-based analysis of the effects of monetary policy rules. But the conspicuous absence of unemployment… 

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