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The role of uncertainty in the unemployment theory of Keynes

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  • Nicolas PILUSO

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Abstract

This paper aims at analysing the role of uncertainty in Keynes theory of involuntary unemployment. This concept has no role in the model of Keynes resulting from the neoclassic synthesis: a result of unvoluntary unemployment equilibrium is obtained as to the violation of Walras law. Section 1 shows the gap between Keynes analysis of unemployment and Glustoff's model. It concerns the question of wage flexibility. Section 2 tries to underline that uncertainty has actually a role in the relationship between wage and employment.

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Bibliographic Info

Article provided by L'Harmattan in its journal Cahiers d'économie Politique.

Volume (Year): (2007)
Issue (Month): 52 ()
Pages: 105-114

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Handle: RePEc:cpo:journl:y:2007:i:52:p:105-114

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