by Job Guarantee and inflation control The employment buffer stock approach, which is more usually referred to in the literature as the Job Guarantee (JG), defines a policy framework in which government operates a buffer stock of jobs to absorb workers who are unable to find employment in the private sector … The JG approach stands in contradistinction to the NAIRU approach because instead of manipulating the employment rate by creating unemployment when wage-price pressures develop, the government manipulates the buffer employment rate … There can be no inflationary pressures arising directly from a policy where the government offers a wage to any labour not wanted by other employers … Instead of a buffer stock of unemployed being used to discipline
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Job Guarantee and inflation control
The employment buffer stock approach, which is more usually referred to in the literature as the Job Guarantee (JG), defines a policy framework in which government operates a buffer stock of jobs to absorb workers who are unable to find employment in the private sector …
The JG approach stands in contradistinction to the NAIRU approach because instead of manipulating the employment rate by creating unemployment when wage-price pressures develop, the government manipulates the buffer employment rate …
There can be no inflationary pressures arising directly from a policy where the government offers a wage to any labour not wanted by other employers … Instead of a buffer stock of unemployed being used to discipline the distributional struggle, the JG policy achieves this via compositional shifts in employment through transfers in and out of the JG pool. JG policy anchors the general price level to the price of an employed labour buffer stock, and can produce useful output with positive supply side effects.