
Contents
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8.1 Introduction 8.1 Introduction
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8.2 Crude Keynesianism versus a Crude Natural Rate 8.2 Crude Keynesianism versus a Crude Natural Rate
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8.3 The Structuralist Approach 8.3 The Structuralist Approach
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8.4 The Structure of a Structuralist Model 8.4 The Structure of a Structuralist Model
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8.5 Conclusion 8.5 Conclusion
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Appendix Anatomy of the Austro-Swedish Model Appendix Anatomy of the Austro-Swedish Model
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References and Suggested Readings References and Suggested Readings
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Eight Indeterminacies in Wage and Asset Price Expectations: A Structuralist Model of Employment and Growth
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Published:January 2013
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Abstract
This chapter examines indeterminacies in wage and asset price expectations. It first considers what it argues are fatal flaws in Keynesian economics, comparing crude Keynesianism with a crude natural rate of unemployment. It then introduces a structuralist model of employment and economic growth that better illuminates the long slump without inflation in the United States. In a structuralist model, nonmonetary forces operate through structural channels to impact the path of employment and its medium-term level (as well as its long-term level). Asset prices, such as housing prices, are expressed in real terms. The chapter describes how structuralist models approaches issues relating to asset prices and wages and concludes by explaining how to think about expectation formation in modern economies—economies of the sort that became the lifetime subject of Frank H. Knight, John Maynard Keynes, and F. A. Hayek.
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