Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/172313
Authors: 
Boianovsky, Mauro
Year of Publication: 
2017
Series/Report no.: 
CHOPE Working Paper 2017-21
Abstract: 
The paper investigates Champernowne's 1936 attempt to sort out the debate between Pigou (1933) and Keynes (1936) about employment determination. Champernowne agreed with Keynes that workers can only bargain for a money-wage, but argued that, to the extent that workers' (adaptive) price expectations lead to accelerating inflation or deflation, this will prompt central banks to change interest rates in order to bring the economy to its equilibrium ("basic") unemployment rate, with real wages equal to their anticipated values. However, that mechanism will not work if general uncertainty ("nervousness") prevails among businessmen.
Subjects: 
Champernowne
Pigou
Keynes
employment
expectations
JEL: 
B22
B30
Document Type: 
Working Paper

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