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Is the NAIRU theory a Monetarist, New Keynesian, Post Keynesian or a Marxist theory?

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  • Stockhammer, Engelbert

Abstract

The NAIRU theory has become the mainstream theory in explaining unemployment in Europe and is often used to justify demands for a cutback of the welfare state, reducing unemployment benefits, reducing minimum wages, decentralizing collective bargaining etc. Close inspection reveals that it nonetheless shares some arguments with Post Keynesian and even Marxist theory. The paper proposes an underdetermined, encompassing NAIRU model, which is consistent with several theoretical tradtions. Depending on the closure with respect to demand formation and determination of the NAIRU itself, the model allows for New Keynesian, Post Keynesian and Marxist results. (author's abstract)

Suggested Citation

  • Stockhammer, Engelbert, 2006. "Is the NAIRU theory a Monetarist, New Keynesian, Post Keynesian or a Marxist theory?," Department of Economics Working Paper Series 96, WU Vienna University of Economics and Business.
    • Handle: RePEc:wiw:wus005:1278
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    More about this item

    Keywords

    NAIRU; unemployment; New Keynesian Economics; Post Keynesian Economics; Marxian Economics;
    All these keywords.

    JEL classification:

    • B50 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - General
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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