KEYNESIAN UNEMPLOYMENT

Abstract

In the face of a huge diversity of opinions among contemporary researchers when it comes to Keynesian thought, and recent permeation of strong neo-liberal concepts, such notions as “Keynesian unemployment” or “Keynesian policy” do not carry any specific, concrete meaning any longer. New Keynesian theories offer various definitions of unemployment and advise on economic policies, while many New Keynesian models postulate the supremacy of the voluntary rather than involuntary unemployment. What is more, those constructions which underlie involuntary unemployment question long-term efficiency of demand policy. Examples of modern Keynesian constructions referring to a broad neoclassical perspective concerning the unemployment phenomenon include search theoretic models on the labour market, implicit contracts, NAIRU and hysteresis, or the New Keynesian Phillips Curve