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On Alternative Approaches to Employment Dynamics

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Lenard, T. On Alternative Approaches to Employment Dynamics. Credit and Capital Markets – Kredit und Kapital, 9(2), 164-176. https://doi.org/10.3790/ccm.9.2.164
Lenard, Thomas M. "On Alternative Approaches to Employment Dynamics" Credit and Capital Markets – Kredit und Kapital 9.2, 1976, 164-176. https://doi.org/10.3790/ccm.9.2.164
Lenard, Thomas M. (1976): On Alternative Approaches to Employment Dynamics, in: Credit and Capital Markets – Kredit und Kapital, vol. 9, iss. 2, 164-176, [online] https://doi.org/10.3790/ccm.9.2.164

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On Alternative Approaches to Employment Dynamics

Lenard, Thomas M.

Credit and Capital Markets – Kredit und Kapital, Vol. 9 (1976), Iss. 2 : pp. 164–176

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Article Details

Lenard, Thomas M.

References

  1. 1. A. Alchian, Information Costs, Pricing, and Resource Unemployment, in E. Phelps et al., cited below.  Google Scholar
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  6. 6. E. Phelps et al., Microeconomic Foundations of Employment and Inflation Theory, New York, 1970.  Google Scholar

Abstract

On Alternative Approaches to Employment Dynamics

This paper compares the effects of imperfect price and money wage information in a three good aggregate model. When price information is imperfect employment will rise (temporarily) in response to an expansionary disturbance only if learning is sluggish relative to labor market adjustment. When money wage information is imperfect, this short run tradeoff between employment and price change is obtained as long as learning is not instantaneous. Both the learning lag and the lag of wages behind prices play a role. In response to a contractionary disturbance the assumptions of imperfect information will not affect the employment path followed.