The debate on the nature of equilibrium in Keynes´ General Theory

Authors

  • José Luis Oreiro

DOI:

https://doi.org/10.5380/re.v32i2.7726

Keywords:

chave, Keynes, equilíbrio com desemprego, flexibilidade de preços, salários nominais, equilibrium with unemployment, price flexibility, nominal wages

Abstract

The nature of the equilibrium cum unemployment presented by Keynes in his General Theory is discussed in light of recent debates in macroeconomics. Special attention is paid to the views of James Tobin and Paul Davidson. As a corollary of this discussion, as we conclude, it follows that the essence of the Keynesian revolution is to be sought on the field of economic dynamics. In other words, it is about demonstrating the incapacity of the price system to create nonexplosive behavior in economic systems.

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How to Cite

Oreiro, J. L. (2006). The debate on the nature of equilibrium in Keynes´ General Theory. Revista De Economia, 32(2). https://doi.org/10.5380/re.v32i2.7726

Issue

Vol. 32 No. 2 (2006)

Section

Artigos

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