Read it at heteconomist
My concern here is with the position of the Monetary Realists on full employment as such. Sometimes they seem to suggest that full employment should not be a policy objective on the grounds that unemployment and, by implication, slack labor markets are conducive to efficiency and high productivity. At other times, they instead make the claim that full employment could be achieved through means other than a Job Guarantee, or even that full employment would occur as a matter of course once other objectives (e.g. “Full Productivity”) were met. In my view, both these claims are unfounded. The latter, in particular, has no legitimate basis in economic theory.
Monetary Realism and Guaranteed Employment
by Peter Cooper
Bookmark Peter's post. I have a feeling that in the ensuing discussions about Monetary Realism's development, the points that Peter makes about the challenges existing economic theory presents will be highly relevant.