IDEAS home Printed from https://ideas.repec.org/a/bla/ausecp/v45y2006i3p227-240.html
   My bibliography  Save this article

John Maynard Keynes Meets Milton Friedman And Edmond Phelps: The Range Versus The Natural Rate In Australia, 1965:4 To 2003:3

Author

Listed:
  • JENNY N. LYE
  • IAN M. MCDONALD

Abstract

In this paper we compare the estimates of the range model in Lye and McDonald (2005a) with estimates of a natural rate model. We find that the range model is superior to the natural rate model according to econometric criteria and economic plausibility. Our estimates of the range model suggest that a significantly lower rate of unemployment is obtainable at the current time by aggregate demand policy, indeed a rate of 3.1 per cent for 2003:3 compared with about 6.5 per cent for the natural rate model. Thus we conclude that basing macroeconomic policy on the natural rate model would underrate the possibilities for economic welfare in Australia.

Suggested Citation

  • Jenny N. Lye & Ian M. Mcdonald, 2006. "John Maynard Keynes Meets Milton Friedman And Edmond Phelps: The Range Versus The Natural Rate In Australia, 1965:4 To 2003:3," Australian Economic Papers, Wiley Blackwell, vol. 45(3), pages 227-240, September.
    • Handle: RePEc:bla:ausecp:v:45:y:2006:i:3:p:227-240
    DOI: 10.1111/j.1467-8454.2006.00289.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-8454.2006.00289.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1467-8454.2006.00289.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marika Karanassou & Hector Sala, 2010. "Labour Market Dynamics in Australia: What Drives Unemployment?," The Economic Record, The Economic Society of Australia, vol. 86(273), pages 185-209, June.
    2. Hirschberg, J.G. & Lye, J.N., 2010. "Two geometric representations of confidence intervals for ratios of linear combinations of regression parameters: An application to the NAIRU," Economics Letters, Elsevier, vol. 108(1), pages 73-76, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ausecp:v:45:y:2006:i:3:p:227-240. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0004-900X .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.