MONETARY POLICY EFFECTIVENESS, AND SOME EXPLANATIONS OF UNEMPLOYMENT, FAIR WAGES AND FAIR PRICES IN A GENERAL EQUILIBRIUM SETTING

Authors

  • Dushko Josheski
  • Tatjana Boshkov

DOI:

https://doi.org/10.46763/YFNTS2031026j

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.

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Published

13.09.2021

Issue

Vol. 3 (2020): 3rd International Scientific Conference "Challenges of Tourism and Business Logistics in the 21st Century"

Section

Business logistics and Business administration

License

The intellectual property and copyright of the original content in all scientific contributions within the published paper shall remain with the authors. The authors grant ISCTBL permission to publish the paper. All authors agree to publish the paper under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0).