The Study Of Post-Keynesian Employment Theory Of The Employer Of Last Resort

Employment theory and policy has been a hot issue investigated and disputed by western economists in the history of economic thought.The evolution of western economics employment theory has been along the main line of two forces in controversy,integration and collision: market adjusting and government intervention.The study of western economics employment theory plays a vital role in the choices of macroscopic employment policy.Furthermore,the study will affect the employment efficiency of macroeconomic policy significantly.Currently,we are facing stern employment situation,which needs us to increase employment as a primary goal.Therefore,exploring suitable employment theory and policy based on our country special national condition has become a top priority.Post-Keynesian economists,represented by Hyman Minsky,propounded an employment theory of the Employer of Last Resort(ELR),which is based on the State Theory of Money.A ELR is one in which government promises to make a job available to any qualifying individual who is ready,willing and able to work with a floor wage,therefore providing an infinitely elastic demand for labor.The paper goes deep into research on the theoretical origin,contents,debates,practical experience of the theory of the Employer of Last Resort,and finally analyzes its referencing meaning to our country.The full text is structured as follows:Chapter 1: Introduction.This chapter focuses primarily on the research background,significance,train of thoughts,research methods,structural arrangement and innovative points.Chapter 2: The theory of the Employer of Last Resort.In this section,the paper examines the theoretical origin,contents,the operating mechanism of the theory of the Employer of Last Resort.Chapter 3: The debates of the theory of the Employer of Last Resort.With regard to further define the theoretical context of the theory,this paper has done a detailed analysis of the debates of the theory of the Employer of Last Resort among the main economists,which provides feasible theoretical guidance and alternative solution to the full employment.Chapter 4: The practical experience of the theory of the Employer of Last Resort as well as its referencing meaning to our country.This chapter analyses the practical experience of the New Deal in the United States and the Jefes y jefas in Argentina as specified instances to make reference in running ours.Chapter 5: The conclusion and future prospect.In this study,based on the analyzing the theory of the Employer of Last Resort,new ideas for resolving the problem of unemployment has been discussed in-depth,giving a theoretical basis for adjusting the employment policy and improving the labor market under the open economy condition,therefore providing an alternative solution to the employment problem: government can act as the Employer of Last Resort and establish supplementary employment mechanism through the interaction with the “big market”in the framework of “big government”.