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The Robertson connection between the natural rates of interest and unemployment

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  • Boianovsky, Mauro
  • Presley, John R.

Abstract

The paper explores the connection between the natural rates of unemployment and interest first put forward in the literature by Dennis Robertson in the 1930s. This looks at monetary dynamics in the business cycle and assesses the Robertsonian contribution to developments in macroeconomics before and after Keynes's General Theory. Robertson showed how unanticipated price level changes affect supply and demand in the labour market, as well as the saving-investment process in the credit market. Robertson's approach to economic policy was that of getting the relations right between cyclical changes in prices, output and employment and their long-run equilibrium values over time.

Suggested Citation

  • Boianovsky, Mauro & Presley, John R., 2009. "The Robertson connection between the natural rates of interest and unemployment," Structural Change and Economic Dynamics, Elsevier, vol. 20(2), pages 136-150, June.
    • Handle: RePEc:eee:streco:v:20:y:2009:i:2:p:136-150
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    References listed on IDEAS

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    2. Kovács Ildikó & Marton Noémi & Patka Kinga & Páll Katalin, 2010. "The Determinats Of The Unemployment Rate - Empirical Evidence From Romania," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 277-282, December.
    3. Marinela, Simuţ Ramona & Lavinia, Delcea (Săutiuţ), 2012. "Challenges for Romania’s employment policy in the Real Economy," MPRA Paper 40369, University Library of Munich, Germany.

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