Cost-Determined and Demand-Determined Prices: Lessons for the Industrialised World from Development Economics
In labour surplus developing countries a strategy based on the application of the Keynesian multiplier to generate employment is constrained by the availability of resources. In some of Keynes's writings in general and those on the post-War employment and commodity policy in particular it seems that Keynes himself became aware of the limitation of the savings investment multiplier in generating and maintaining full employment in industrialized economies. The paper argues that the time has now arrived for the economic policy makers to wake up to the limitations of expansionary fiscal and monetary policy alone to combat the current downturn in economic activities.
|Date of creation:||Nov 2008|
|Date of revision:|
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- Harry Bloch & A. Michael Dockery & David Sapsford, 2004. "Commodity prices, wages, and U.S. inflation in the twentieth century," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 26(3), pages 523-545, April.
- Brian Loasby, 2003.
"Closed models and open systems,"
Journal of Economic Methodology,
Taylor & Francis Journals, vol. 10(3), pages 285-306.
- Brian J. Loasby, 2003. "Closed models and open systems," SCEME Working Papers: Advances in Economic Methodology 004/2003, SCEME.
- Ahluwalia, Isher J., 1979. "An analysis of price and output behavior in the Indian economy: 1951-1973," Journal of Development Economics, Elsevier, vol. 6(3), pages 363-390, August.
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