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Uma Revisão dos Argumentos Keynesianos sobre os Determinantes do Equilíbrio de Longo Prazo com Desemprego Involuntário

Fabricio Missio () and José Luís Oreiro ()

No 71, Working Papers from Universidade Federal do Paraná, Department of Economics

Abstract: After the publication of The General Theory of Employment, Interest and Money (hereafter, GT), an intense debate about its main preposition – that the long-run equilibrium of the economy is a position of involuntary unemployment – was established. The consensus view that emerged from it, known as neoclassical synthesis, established the triumph of the classical theory, according to which the long-run equilibrium of the economic system is characterized by full-employment of the labor force. According to the neoclassical synthesis, GT was a special case of the classical theory, the one where nominal wages and/or nominal prices are rigid. The objective of the present paper is to restate the original arguments of the GT in order to show that the conventional interpretation went wrong and that there is enough elements if GT to show that a long-run equilibrium with involuntary unemployment may exist even if nominal wages and prices are flexible.

Keywords: Convergence; Flexibility; Involuntary Employment (search for similar items in EconPapers)
JEL-codes: B13 B30 C61 C63 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2007
Note: Creation Date corresponds to the year in which the paper was published on the Department of Economics website. The paper may have been written a small number of months before its publication date.
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Working Paper: Uma Revisão dos Argumentos Keynesianos sobre os Determinantes do Equilíbrio de Longo Prazo com Desemprego Involuntário (2011) Downloads
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