Keynesian Assumptions and the Dynamics of Price

Christian Barrère

Chapter 7 in Money, Credit and Prices in Keynesian Perspective, 1989, pp 137-161 from Palgrave Macmillan

Abstract: Abstract The various neoclassical schools share the idea that the theory of prices does constitute the centre of economic theory; it tends to merge with the theory of the general equilibrium and the distribution of resources. Prices play a part at three distinct levels. At first, they are the indicators the economic agents use in order to formulate their plans, and they synthesise in such a way the whole set of useful economic data. They are also the means of micro and macroeconomic adjustments since their changes enable firms to reconsider those plans and to make them be consistent. They express the equilibrium by summing up the results of the various adjustments and thus by providing a system of equilibrium prices.

Keywords: Real Wage; Relative Prex; Supply Curve; Nominal Wage; Aggregate Supply (search for similar items in EconPapers)
Date: 1989
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-20117-4_7

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DOI: 10.1007/978-1-349-20117-4_7

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