Three essays about Hysteresis, Secular Stagnations and New Consensus Three-Equation Model: a Post-Keynesian Structuralist Perspective
Hysteresis, Structural Unemployment, Fiscal and Monetary Policy.
This proposal presents a Post-Keynesian Structuralist interpretation of the usual three-equation model considering the strucutral unemployment effects. The new Investments-Saving (IS) curve, Phillips Curve (PC), and Monetary Rule (MR) are obtained from stylized facts. It is possible to note that Structural Unemployment impact in the Non-Accelerating Inflation Natural Rate of Unemployment (NAIRU) and fiscal and monetary policy. In this vein, the Government and the Central Banck must act jointly to combat the Secular Stagnation and the Hysteresis problem. Thus, we aims propose political alternatives to pursue full employment, satisfactory growth, and financial stability. In this sense, fiscal and monetary policy reaching reducing labour market rigidities should be an economic agenda.