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Say's Law and the Business Cycles

Author

Listed:
  • Xianming Meng

    (School of Economics, University of New England)

Abstract

The relationship between Say's Law and the business cycle has been vigorously debated but no generally accepted agreement has yet been reached. Although this is a disputed topic, revisiting it anew could further develop economic theory, and enhance the further growth of the global economy. By scrutinising Say¡¯s Law, and its implicit business cycle theories, this paper claims that general gluts are possible, and that the essence of the business cycle is in innovation scarcity. Thus in order to reduce the effects of the business cycle and spur economic growth, a thorough revision of patent laws is necessary.

Suggested Citation

  • Xianming Meng, 2006. "Say's Law and the Business Cycles," Annals of Economics and Finance, Society for AEF, vol. 7(2), pages 295-319, November.
    • Handle: RePEc:cuf:journl:y:2006:v:7:i:2:p:295-319
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    References listed on IDEAS

    as
    1. repec:bla:econom:v:44:y:1977:i:174:p:145-61 is not listed on IDEAS
    2. J. M. Keynes, 1997. "The General Theory of Employment," Voprosy Ekonomiki, NP Voprosy Ekonomiki, vol. 5.
    3. William J. Baumol, 1997. "J. B. Say on Unemployment and Public Works," Eastern Economic Journal, Eastern Economic Association, vol. 23(2), pages 219-230, Spring.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Say's law; Innovation; Business cycle; Patent;
    All these keywords.

    JEL classification:

    • E19 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Other
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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