Monetary policy effectiveness, and some explanations of unemployment, fair wages and fair prices in a general equilibrium setting

Josheski, Dushko and Boskov, Tatjana (2021) Monetary policy effectiveness, and some explanations of unemployment, fair wages and fair prices in a general equilibrium setting. Econometrics: Mathematical Methods & Programming eJournal Issue, March 09, 2021, 14 (12). ISSN 1556-5068

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Abstract

This paper argues that monetary policy matters in short-run and that it affects unemployment, and prices and wages in near-rational firms. Those profit-maximizer firms are adjusting prices in accordance with consumer expectations and wages are set to be fair accordingly to the workers expectations. This is in exercise is all happening in New Keynesian dynamic stochastic general equilibrium setting which shall be compared to a Real business cycle model with technology shocks.

Item Type:	Article
Subjects:	Social Sciences > Economics and business
Divisions:	Faculty of Tourism and Business Logistics
Depositing User:	Dusko Josevski
Date Deposited:	11 Mar 2021 11:09
Last Modified:	11 Mar 2021 11:09
URI:	https://eprints.ugd.edu.mk/id/eprint/27908

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