TY  - SER
AU  - Woodford, Michael
TI  - Beyond the Natural Rate: Stephen Marglin on the Instability of Market Economies
SN  - 0022-0515
PB  - Journal of Economic Literature
KW  -  Aggregate Human Capital
KW  -  Aggregate Labor Productivity
KW  -  General Aggregative Models: Keynes
KW  -  Intergenerational Income Distribution
KW  - Monetary Policy
KW  - Unemployment
N2  - , Stephen A. Marglin offers a provocative reformulation of Keynes' theoretical framework, stressing the importance of modeling the dynamics of wage and price adjustment. This review explains and assesses Marglin's argument for the possibility of a persistent equilibrium in which goods and/or labor markets continue not to clear in the absence of active stabilization policy. It also compares Marglin's analysis with that of New Keynesian models, and shows that the two approaches are more similar than might be immediately evident
UR  - https://www.aeaweb.org/articles?id=10.1257/jel.20221712
ER  -