This paper provides a general equilibrium framework in which the number of working hours and the employment levels of heterogeneous workers is endogenously determined.
The quotation above expresses a common, if not dominant, view of the genesis of inflationary pressure in an economy. The story goes something like this: High GDP growth eventually places excessive strain on a nation’s resources.
Just before the Federal Open Market Committee’s (FOMC) May 20 meeting, popular opinion about the near-term future of U.S. monetary policy was summarized by John 0. Wilson, chief economist at Bank America Corp.
In March 1991-the trough of the most recent recession-the civilian unemployment rate stood at 6.8 percent. Fifteen months into the recovery, that rate had increased to 7.8 percent, leading many in the media to decry the recovery as