Price Flexibility and Full Employment : Losing the Plot?
Grieve, Roy (2004) Price Flexibility and Full Employment : Losing the Plot? Discussion paper. University of Strathclyde, Glasgow.
|
Text (Grieve-2004-Price-flexibility-and-full-employment-losing-the-plot)
Grieve_2004_Price_flexibility_and_full_employment_losing_the_plot.pdf Final Published Version Download (215kB)| Preview |
Abstract
This paper, from a historical perspective, questions the thesis (again in fashion) that price flexibility ensures full employment. The point is made that explanation of unemployment in terms of wage/price stickiness typified pre-Keynesian accounts, but not Keynes’s theory of involuntary unemployment. Under uncertainty, no set of prices consistent with full employment may actually exist: if so, price flexibility is not the critical factor. Finally, with respect to current use of the “AD/AS model”, we note that the strong arguments against attribution of necessarily beneficient effects to price and wage flexibility, which ought to be well-known, seem now to be forgotten.
Creators(s): | Grieve, Roy; | Item type: | Monograph(Discussion paper) |
---|---|
ID code: | 67730 |
Notes: | Published as a paper within the Discussion Papers in Economics, No. 04-07 (2004) |
Keywords: | price flexibility, full employment, economics, Economic Theory, Economics, Econometrics and Finance(all) |
Subjects: | Social Sciences > Economic Theory |
Department: | Strathclyde Business School > Economics |
Depositing user: | Pure Administrator |
Date deposited: | 07 May 2019 15:28 |
Last modified: | 20 Dec 2020 02:56 |
URI: | https://strathprints.strath.ac.uk/id/eprint/67730 |
Export data: |