search query: @author Dreze, J. H. / total: 4
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| Author: | Dreze, J. H. |
| Title: | Walras-Keynes equilibria coordination and macroeconomics |
| Journal: | European Economic Review
1997 : DEC, VOL. 41:9, p. 1735-1762 |
| Index terms: | SUPPLY PRICES MACROECONOMICS |
| Language: | eng |
| Abstract: | In decentralized market economies, supply-constrained equilibria may persist as coordination failures, not caused but sustained by price rigidities. This feature may be arbitrarily severe, even at prices compatible with competitive equilibrium. The supply-contraints may originate in rational expectations. Some implications for macroeconomics are drawn. The possibility of coordination failures explains why organized labour may resist wage flexibility. These features are illustrated in elementary macroeconomic prototypes, like RBC or Barro-Grossman-Malinvaud prototypes. |
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