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Trying to Understand Stagflation

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  • Ian M. McDonald

Abstract

After a brief account of some of the salient facts of Australia's recent economic experience, this paper reviews some explanations for the apparent failure of labour markets to clear in recession and then reviews some explanations for the fluctuations in the aggregate demand for labour. Next, some links between real wages and employment are examined. The paper concludes with a discussion of the implications for economic policy of the preceding analysis.

Suggested Citation

  • Ian M. McDonald, 1984. "Trying to Understand Stagflation," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 17(3), pages 32-56, November.
    • Handle: RePEc:bla:ausecr:v:17:y:1984:i:3:p:32-56
    DOI: 10.1111/j.1467-8462.1984.tb00452.x
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    References listed on IDEAS

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    Cited by:

    1. Ian M. McDonald, 1985. "Macroeconomic Policy in Australia Since the Sixties," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(3), pages 6-19, September.
    2. William Coleman, 1998. "Should We Wait to ‘Grow Out of’ Unemployment? The Implications of a Neoclassical Calibration Analysis," The Economic Record, The Economic Society of Australia, vol. 74(225), pages 162-169, June.
    3. Jocelyn Home, 1984. "Comment: on ‘Trying to Understand Stagflation’," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 17(3), pages 57-58, November.
    4. Peter. D. Kenyon, 1984. "Comment: on ‘Trying to Understand Stagflation’," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 17(3), pages 59-61, November.

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