Abstract

In the wake of "institutionalism" and the "new economics", analyses that contradict traditional economic formulations are increasingly emerging. Many of their conclusions and recommendations are relevant and useful for the economic policy of countries making the transition to a market economy. The aim of this publication is to briefly present a theoretical approach to unemployment in Europe developed by the Dutch economist Ronald Schetkat. Characteristic of this approach is that it analyses not the business cycle but the interaction between supply and demand in product and labour markets. Studying mainly unemployment in Germany, the Netherlands and the USA, the author proves that increasing employment and social security are compatible and that institutional frameworks do not have to be the same in all countries.