Keynes tried to show that market economies could settle in equilibrium states in which the labour market did not clear, and in which the level of unemployment was high. He believed that this was due to a particular example of market failure, developed in his concept of effective demand. (Paul Ormerod)

Keynes tried to show that market economies could settle in equilibrium states in which the labour market did not clear, and in which the level of unemployment was high. He believed that this was due to a particular example of market failure, developed in his concept of effective demand.

Paul Ormerod

Related topics

clear concept due equilibrium example failure high market settle show try keynes labour states

Related quotes

There is a theory which states that if ever anyone discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable.There is another theory which states that this has already happened.

Douglas Adams

Guard your mind from self-praise and flee a high opinion of yourself, so that God does not allow you to fall into the opposite passion to the virtue for which you boast, for man does not accomplish virtue alone, but with the help of God who sees all.

Marcus Eremita

The total effective demand for commodities in the market is limited to the number of units of money of account that dealers are prepared to offer, and the number they are prepared to offer over any period of time is limited according to the number they hope to receive.

Ralph George Hawtrey

Now, modern economies have a very effective mechanism for deciding if salaries are really too high: it's called the free market. That's how most people's salaries are set, after all, including those of major-league baseball players and European soccer players.

James Surowiecki

It was Sophie [Taeuber] who, by the example of her work and her life, both of them bathed in clarity, showed me the right way. In her world, the high and the low, the light and the dark, the eternal and the ephemeral, are balanced in prefect equilibrium.

Jean Arp