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

Author

Listed:
  • Fabrício J. Missio

    (Universidade Estadual de Mato Grosso do Sul)

  • José Luís Oreiro

    (Department of Economics, Universidade Federal do Paraná)

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.

Suggested Citation

  • Fabrício J. Missio & José Luís Oreiro, 2007. "Uma Revisão dos Argumentos Keynesianos sobre os Determinantes do Equilíbrio de Longo Prazo com Desemprego Involuntário," Working Papers 0071, Universidade Federal do Paraná, Department of Economics.
    • Handle: RePEc:fup:wpaper:0071
    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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    Keywords

    Convergence; Flexibility; Involuntary Employment;
    All these keywords.

    JEL classification:

    • B13 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Neoclassical through 1925 (Austrian, Marshallian, Walrasian, Wicksellian)
    • B30 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - General
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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