The Post Keynesian (hereafter PK) theory of employment is derived from Keynes’s chapter 3 (1936a) ‘The Principle of Effective Demand’ where labour-hire demand is derived from an effective demand point determined in the product markets.1 Tobin (1992, p. 392) states this chapter is ‘the most important innovation of the General Theory’. The effective demand principle means that there is an ‘employment function’ (Keynes, 1936a, chapter 20) relating alternate labour-hire decisions to alternate points of effective demand. There is no aggregate demand for labour schedule with the real wage as the independent variable (Davidson, 1983).
Weitere Kapitel dieses Buchs durch Wischen aufrufen
- Post Keynesian Employment Analysis and the Macroeconomics of OECD Unemployment
- Palgrave Macmillan UK