@article{1385895,
      recid = {1385895},
      author = {Galí, Jordi,},
      title = {Unemployment fluctuations and stabilization policies : a  new Keynesian perspective /},
      publisher = {MIT Press,},
      address = {Cambridge, Mass. :},
      pages = {1 online resource (106 pages) :},
      year = {2011},
      note = {Revised version of lectures delivered at the University of  Copenhagen on March 17-19, 2010.},
      abstract = {A new approach for introducing unemployment into the New  Keynesian framework.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 from the standard New  Keynesian model has given rise to both criticism and  attempts to rectify this anomaly. In this book, Jordi Gali,  one of the major contributors to the New Keynesian  literature, offers a new approach to introducing  unemployment into that framework. Gali's approach involves  a reinterpretation of the labor market in the standard New  Keynesian model with staggered wage setting (rather than a  modification or extension of the model, as has been  proposed by others). The resulting framework preserves the  convenience of the representative household paradigm and  allows one to determine the equilibrium levels of  employment, the labor force, and hence the unemployment  rate conditional on the monetary policy in place. Gali  develops the basic model, embedding it in a standard New  Keynesian framework with staggered price and wage setting;  revisits the relationship between economic fluctuations and  efficiency through the lens of the new model, developing a  measure of the output gap; and analyzes the relation  between unemployment and the design of monetary policy.},
      url = {http://library.usi.edu/record/1385895},
}