Includes bibliographical references (pages 267-288) and index.
Full employment: changing views and policies. The full employment framework and its demise ; Early views on unemployment and the Phillips curve ; The Phillips curve and shifting views on unemployment ; The troublesome NAIRU: the hoax that undermined full employment -- Full employment abandoned: shifting sands and policy failures. The shift to full employability ; Inflation first: the new mantra of macroeconomics ; The neglected role of aggregate demand -- The urgency of full employment: foundations for an active policy. A monetary framework for fiscal policy activism ; Buffer stocks and price stability ; Conclusion: the urgency of full employment.
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Argues that the blame for labour under-utilisation across OECD countries lies with the policy failures of governments. This book illustrates that misguided fiscal and monetary stances have damaged the capacities of the various economies to produce enough jobs. It outlines an alternative view of macroeconomic theory and policy opportunities.