Real Wages and Employment

This book distinguishes between monetarist and Keynesian theories and policy prescriptions relating to the labour market and outlines the differences between them: concentrating on their respective views on the importance of price.

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With both Monetarist and Keynesian economic theory so closely bound up with employment levels and inflation, the contrast between the two models is here given thorough examination in light of real post-war data. Following the development of Monetarism as a reaction against Keynesian analysis, Drobny focuses on the importance of relative pricing within each approach as a basis for comparison. Drawing from both theories, the author forms models of labour demand and applies the conflicting results to a series of pragmatic tests, thereby highlighting the usefulness and the limitations of each standpoint.