On the natural rates of unemployment and interest: the Robertson connection

The paper explores the connection between the natural rates of unemployment and interest put forward by Robertson in the 1930s. This looks at monetary dynamics in the business cycle and assesses the Robertsonian contribution to post-Keynesian developments in macroeconomic theory and policy. Robertson’s approach is that of getting the correct balance between economic progress and economic stability, getting the relations right between cyclical changes in prices, output and employment and their long run equilibrium values over time.