Monetary Policy and the German Unemployment Problem in Macroeconomic Models

Theory and Evidence

  • JanĀ Gottschalk

Part of the Kieler Studien - Kiel Studies book series (KIELERSTUD, volume 334)

About this book

Introduction

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.

Keywords

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

Authors and affiliations

  • JanĀ Gottschalk
    • 1
  1. 1.Washington DC

Bibliographic information

  • DOI https://doi.org/10.1007/3-540-37679-8
  • Copyright Information Springer-Verlag Berlin Heidelberg 2005
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-540-25650-2
  • Online ISBN 978-3-540-37679-8
  • Series Print ISSN 0340-6989
  • About this book