In his paper at http://www.nber.org/papers/w14259, Olivier Blanchard writes that > In thinking about policy, one must think about three different concepts of > activity: First, the actual level of output. Second, the level of output > which would prevail in the absence of nominal rigidities, often called the > natural level of output... Third, the level of output which would prevail in > the absence of nominal rigidities and other imperfections (in the basic NK > model, the monopoly power of firms)... <
the second is what Abba Lerner (back in 1951, in his _Economics of Employment_) called "low full employment" and the third is what he called "high full employment." Plus ça change... -- Jim Devine / "Nobody told me there'd be days like these / Strange days indeed -- most peculiar, mama." -- JL. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
