Structural Slumps: The Modern Equilibrium Theory of Unemployment, Interest, and Money.

PHELPS, Edmund S. In collaboration with Hiam Teck Hoon.

$350.00

Item Number: 95092

Harvard University Press: Cambridge, Massachusetts, 1994.

First edition of Phelps’ important contribution to understanding the business cycle. Octavo, original cloth. Signed by Edmund Phelps on the title page. Fine in a near fine dust jacket. Jacket design by Gwen Frankfeldt.

Dissatisfied by the explanations of the business cycle provided by Keynsian, monetarist, New-Keynsian, and real business cycle schools, Edmund S. Phelps developed a radically different theory to account for the long periods of unemployment that have occurred in both the United States and Western Europe since the early 1970s. Through the construction of three stylized general equilibrium models, Phelps explains in the present volume how the natural rate is disturbed by real demand and supply shocks and the adjustments they set in motion.