On the macroeconomics of uncertainty and incomplete markets
(1999)
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- Authors
- Abstract
- Presidential address for the Twelfth World Congress of the International Economic Association, summarising semi-formally the author?s recent work and concerns. Uncertainty and incomplete markets breed demand volatility as well as price and wage rigidities. The conjunction of these leads to multiple, volatile supply-constrained equilibria, typically reflecting coordination failures and apt to display persistence - as documented by three supporting theorems. Specific implications are linked to the conclusions that we should take coordination failures seriously, try to obviate demand volatility and try to bypass price and wage rigidities.
- Affiliations
Citations
Dreze, J. (1999). On the macroeconomics of uncertainty and incomplete markets (CORE Discussion Papers 1999/64). https://hdl.handle.net/2078.5/128168