 Prices and Real WagesBrendan Sheehan
Chapter 10 in Understanding Keynes’ General Theory, 2009, pp 195-211 from Palgrave Macmillan Abstract: Abstract The previous chapter examines the impact on employment of changes in money wages and prices that are not due in the first instance to changes in the level of effective demand. This chapter considers a separate issue: namely the changes in money wages, prices and real wages that are in response to variations in effective demand and output. The classical theory of money and prices is of little use in examining these responses, for it only applies to the special circumstances of a fully employed economy with effective demand assumed constant. In addition Keynes has severe reservations about the classical dichotomy between the theories of prices and value. In contrast Keynes’ General Theory model provides a generalised explanation of the response of money wages, prices and real wages to changes in effective demand. In doing this Keynes integrates the theories of value and prices, and this provides a springboard for his generalised analysis of prices and inflation. Keywords: Real Wage; Money Supply; Total Employment; Full Employment; Investment Programme (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-23285-3_10 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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