By Alan Coddington
ISBN-10: 0415313686
ISBN-13: 9780415313681
Keynesian Economics offers a wide-ranging serious exam of the presuppositions and strategies of Keynesian research. the result's either a transparent advisor to fashionable macro-economic thought and coverage and a revealing workout within the fresh heritage of principles - rules that are hugely contentious and nonetheless deeply influential.
"(Alan) Coddington made numerous substantive contributions to the certainty of Keynesian economics which tested his repute no longer in basic terms within the united kingdom yet in significant centres of economics round the world." The Times
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Example text
The pragmatics of ‘demand deficiency’ Within the Keynesian system, the existence of involuntary unemployment is taken as a symptom of a condition of demand deficiency within the economy. One way in which we may hope to elucidate the concept of involuntary unemployment, therefore, is by a discussion of how, and in relation to what, demand may be deficient. Since, however, this diagnostic use of the concept is intended to be of practical relevance in the guidance of policy, it will be appropriate to discuss the concept in the context of just such a practical, policy-oriented concern.
Barbara Wootton (1938, pp. 237-8), for example, has observed: ‘there is never any problem of unemployment in any group in which the market has been eliminated altogether: such, for example, as a monastery or an army. e. ’ One way in which we may pursue the role of collective action in remedying unemployment problems is to consider the clearcut case in which the labour market is completely collectivised. We may do this by supposing that the entire labour force is employed by the state; everyone wishing to work presents himself to the Ministry of Labour and is automatically accepted, as of right; the Ministry of Labour then decides what job each individual shall carry out and what pay goes with it.
Rather, the discussions are addressed to working out the possible expenditure implications of taking it for granted that these things will be so. So, although such discussion is often spoken of as dealing with ‘market failure’ (at a highly aggregative level), it should be seen that the discussion does not contribute towards any explanations of why or how markets are failing. Rather, the explanations are concerned to explore some possible income and expenditure implications of markets failing in a particular manner.