Macroeconomics Beyond the NAIRU

Servaas Storm; C. W. M Naastepad

Published by Harvard University Press 2011

Macroeconomics Beyond the NAIRU

Servaas Storm and C. W. M Naastepad

https://doi.org/10.4159/harvard.9780674063242

Overview
Contents

About this book

Economists and the governments they advise have based their macroeconomic policies on the idea of a natural rate of unemployment. Government policy that pushes the rate below this point—about 6 percent—is apt to trigger an accelerating rate of inflation that is hard to reverse, or so the argument goes. In this book, Storm and Naastepad make a strong case that this concept is flawed: that a stable non-accelerating inflation rate of unemployment (NAIRU), independent of macroeconomic policy, does not exist. Consequently, government decisions based on the NAIRU are not only misguided but have huge and avoidable social costs, namely, high unemployment and sustained inequality.

Skillfully merging theoretical and empirical analysis, Storm and Naastepad show how the NAIRU’s neglect of labor’s impact on technological change and productivity growth eclipses the many positive contributions that labor and its regulation make to economic performance. When these positive effects are taken into account, the authors contend, a more humane policy becomes feasible, one that would enhance productivity and technological progress while maintaining profits, thus creating conditions for low unemployment and wider equality.

Author / Editor information

Storm Servaas :

Servaas Storm is Senior Lecturer in Economics at Delft University of Technology.Naastepad C. W. M. :

C. W. M. Naastepad is Senior Lecturer in Economics at Delft University of Technology.

Topics

Frontmatter Requires Authentication Unlicensed Licensed Download PDF	i
Contents Requires Authentication Unlicensed Licensed Download PDF	vii
Preface Requires Authentication Unlicensed Licensed Download PDF	ix
1 The Power of Ideas Requires Authentication Unlicensed Licensed Download PDF	1
2 The Weakness of the Evidence Requires Authentication Unlicensed Licensed Download PDF	28
3 A Growth Model Requires Authentication Unlicensed Licensed Download PDF	55
4 The OECD Productivity Regime Requires Authentication Unlicensed Licensed Download PDF	81
5 OECD Demand Regimes Requires Authentication Unlicensed Licensed Download PDF	112
6 The Generalization of the NAIRU Theory Requires Authentication Unlicensed Licensed Download PDF	167
7 Europe’s Nordic Model Requires Authentication Unlicensed Licensed Download PDF	187
8 Macroeconomics Beyond the NAIRU Requires Authentication Unlicensed Licensed Download PDF	212
Appendix: Data Sources Requires Authentication Unlicensed Licensed Download PDF	243
Notes Requires Authentication Unlicensed Licensed Download PDF	245
Bibliography Requires Authentication Unlicensed Licensed Download PDF	261
Index Requires Authentication Unlicensed Licensed Download PDF	283

Language: English
Publisher: Harvard University Press
Audience: General/trade;
Pages
- Main content: 304
Illustrations
- Other: 27 graphs, 27 tables

eBook

Published: January 2, 2012
ISBN: 9780674063242