The paper examines the effects of macro-economic policy on poverty when the labour market is subject to partial wage rigidity. It shows that the orothodox assumption of a perfect labour market ignores a number of important conflicts arising from macro-economic policy. Specifically, it...

cover -- Contents -- Series Foreword -- Preface -- Introduction -- A Simple Model of Unemployment and Inflation Dynamics -- Unemployment, the Output Gap, and the Welfare Costs of Economic Fluctuations -- Unemployment and Monetary Policy Design in the New Keynesian Model -- Concluding Remarks and...