Premium
FINANCIAL SHOCKS, UNEMPLOYMENT AND PUBLIC POLICY
Author(s) -
DRIFFILL JOHN
Publication year - 2013
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/manc.12012
Subject(s) - dynamic stochastic general equilibrium , economics , unemployment , debt , financial crisis , asset (computer security) , recession , wage , finance , macroeconomics , monetary policy , monetary economics , labour economics , computer security , computer science
This paper reviews key features of the 2007–08 financial crisis, ‘ G reat Recession ’ and E uropean public debt problem. In the light of these it discusses new avenues of research that have opened up. A large body of opinion supports continued research within the dynamic stochastic general equilibrium ( DSGE ) paradigm, dealing incrementally with inter alia financial frictions, heterogeneous agents, and more descriptively realistic models of wage and price adjustment than ‘ C alvo contracts’. However, the crisis has boosted more radical approaches to money and finance, modelling bubbles in asset prices, and taking forward insights from psychological research and experimental and behavioural economics.