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Following the tradition of classical economics, Pigou favoured the idea of "natural rates" to which the economy would return in most cases, although he acknowledged that sticky prices might still prevent reversion to natural output levels after a demand shock. Pigou saw the "Real Balance" effect as a mechanism to fuse Keynesian and classical ...
Arthur Cecil Pigou (/ ˈ p iː ɡ uː /; 18 November 1877 – 7 March 1959) was an English economist.As a teacher and builder of the School of Economics at the University of Cambridge, he trained and influenced many Cambridge economists who went on to take chairs of economics around the world.
Professor Pigou's theory runs, to a quite amazing extent, in real terms... The ordinary classical economist has no part in this tour de force. But if, on behalf of the ordinary classical economist, we declare that we would have preferred to investigate many of those problems in money terms, Mr. Keynes will reply that there is no classical ...
However, Pigou retained free market beliefs, and in 1933, in the face of the economic crisis, he explained in The Theory of Unemployment that the excessive intervention of the state in the labor market was the real cause of massive unemployment because the governments had established a minimal wage, which prevented wages from adjusting ...
John Maynard Keynes attacked some of these "classical" theories and produced a general theory that described the whole economy in terms of aggregates rather than individual, microeconomic parts. Attempting to explain unemployment and recessions , he noticed the tendency for people and businesses to hoard cash and avoid investment during a ...
China’s slowing growth, real estate crisis, high youth unemployment, and U.S. restrictions on key technologies have led to predictions of a so-called lost decade of stagnation.
Sweezy's first formally published paper on economics was a 1934 article entitled "Professor Pigou's Theory of Unemployment," published in the Journal of Political Economy in 1934. [3] Over the rest of the decade Sweezy wrote prolifically on economics-related topics, publishing some 25 articles and reviews. [3]
The U.S. unemployment rate for the August 2024 was 4.2% with around 7 million Americans unemployed. Trump says Wharton School professors support his economic plan