Classical and Keynesian Unemployment in the IS-LM Model [chapter]

Jean-Michel Grandmont
1987 Monetary Theory and Economic Institutions  
The recent literature on equilibrium with quantity rattoning has cast a new light on the origins and the cures of unemployment. By reconsidering the traditional Keynesian elementary multiplier model, this approach has in particular brought to the forefront of the analysis the important distinction between Keynesian unemployment, which results from a lack of demand, and Classical unemployment, which cornes from too high a real wage (the first attempts to model these different sorts of unemployment are due
doi:10.1007/978-1-349-08781-5_4 fatcat:b2lftl4ldrbatlglldldnwr5u4