Alternative Voices in Contemporary Economics

1 total work

Uncertainty, Macroeconomic Stability and the Welfare State

by Sven R Larson

Published 12 February 2002

This monograph sets out to model a macroeconomy that is inherently unstable because of qualitative - or Keynesian - uncertainty. By modelling a macroeconomic theory, this approach to fixed or sticky prices also investigates the link between uncertainty, sticky prices, and macro-stability - by suggesting that such prices improve economic activity rather than impeding it.