Explaining the aggregate price level with Keynes's principle of effective demand
نویسندگان
چکیده
منابع مشابه
Explaining the aggregate price level with Keynes ' s principle of effective demand
The conventional wisdom about Keynes’s Principle of Effective Demand is that it states something about quantities. It is widely held that the Principle determines the levels of output and employment in a world not governed by Say’s Law. This paper argues that the Principle of Effective Demand goes beyond this to explain not only ‘real’ activity levels but also the aggregate price level. A varia...
متن کاملExplaining the Fiscal Theory of the Price Level
Many traditional macroeconomic models do not have determinate predictions for the path of inflation: even for a given specification of money supplies, many paths of inflation are consistent with equilibrium. According to the fiscal theory of the price level, fiscal policy can be used to select which of these many paths actually occur. This article explains the fiscal theory of the price level a...
متن کاملAggregate-level demand management in evacuation planning
Without successful large-scale regional evacuations, threats such as hurricanes and wild-fires can cause a large loss of life. In this context, automobiles are oftentimes an essential transportation mode for evacuations, but the ensuing traffic typically overwhelms the roadway capacity and causes congestion on a massive scale. Congestion leads to many problems including longer, costlier, and mo...
متن کاملTrying to Make Sense of the Principle of Effective Demand
Most of the scholarly reinterpretations of the Principle of Effective Demand are not in line with Keynes’s original presentation of it in Chapter 3 of the General Theory. To substantiate this claim, Keynes’s definition is here first reproduced and then compared with different reinterpretations of the principle by textbook authors, and Neo-Ricardian, Kaleckian, and Post Keynesian economists. A n...
متن کاملCoordination in Two Level Supply Chain with Price Dependent Demand
In the present day scenario of industrial competition, supply chain management seeks to synchronize a firm’s processes and those of its suppliers to match the flow of materials, services and information with customer demand. It involves the coordination of key processes in the firm such as order placement, order fulfillment and purchasing which are supported by marketing, finance, engineering, ...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Review of Social Economy
سال: 2006
ISSN: 0034-6764,1470-1162
DOI: 10.1080/00346760601024443