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Keynes and Conventional Equilibria

  • Bruce Littleboy
Chapter

Abstract

Two ideas about Keynes’s views on unemployment equilibrium have found support. The first is the strident claim that there can exist in logic a vector of prices and quantities which would persist in the long run were it not for the likelihood in practice of exogenous shocks in a world of uncertainty and flux. The second idea identifies Keynes’s insight as one where short-run unemployment states can be protracted and where the automatic restoration of full-employment equilibrium involves a tediously slow and irregular process of adjustment. Patinkin1 and Clower2 can be associated with the latter, more widespread, view.

Keywords

Interest Rate Real Wage Full Employment Price Expectation Money Wage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Mario Sebastiani 1992

Authors and Affiliations

  • Bruce Littleboy

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