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Inflation and unemployment are two of the most serious economic problems facing us today. For forty years from the mid-thirties there was a growing consensus that economic analysis and policy prescription should be based on Keynesian economics. This consensus was shattered by the growth of monetarism. It is the author's belief that monetarist analysis is misguided and fails to understand the nature of the economic activity it seeks to explain, and that this is nowhere more evident than in its treatment of labour markets. This textbook attempts to show how and why monetarism is wrong. First-degree students of macroeconomics and labour markets
