Inflation and Unemployment: Contributions to a New Macroeconomic Approach (Routledge Studies in the Modern World Economy, 3)

BOOK COVER......Page 1
HALF-TITLE......Page 2
TITLE......Page 4
COPYRIGHT......Page 5
CONTENTS......Page 6
CONTRIBUTORS......Page 9
INTRODUCTION......Page 11
Part I INFLATION AND UNEMPLOYMENT: A MONETARY AND STRUCTURAL FRAMEWORK FOR ANALYSIS......Page 24
INTRODUCTION......Page 25
THE QUANTITY THEORY OF MONEY: A REAPPRAISAL......Page 26
THE TRADITIONAL ANALYSIS OF INFLATION: A CRITICAL SURVEY......Page 31
Demand-pull inflation......Page 33
Cost-push inflation......Page 39
International payments and inflation......Page 42
UNEMPLOYMENT......Page 44
STAGFLATION......Page 51
INFLATION AND DEFLATION AS THE CONSEQUENCES OF THE SAME ANOMALY......Page 57
INTRODUCTION......Page 67
TWO FRAMEWORKS OF ANALYSIS: THE CIRCULAR MODEL AND THE VERTICALLY INTEGRATED MODEL......Page 68
TECHNOLOGICAL UNEMPLOYMENT IN THE VERTICALLY INTEGRATED MODEL......Page 71
INTERNATIONAL MOBILITY OF LABOUR, INFORMATION AND TECHNICAL KNOWLEDGE......Page 74
SUMMING UP......Page 75
Part II INFLATION AND DEFLATION AS MONETARY PATHOLOGIES......Page 79
INTRODUCTION......Page 80
Households own the total income formed in the period......Page 84
Households and enterprises own the sum total of all net incomes created in the set of successive periods, year after year......Page 88
THE COMPLETE DEMONSTRATION OF THE EQUIVALENCE OF SAVING AND INVESTMENT MUST BE FOUNDED ON A REVISION OF THE CONCEPT OF MONEY......Page 90
A startling view: net incomes earned by enterprises, i.e. net profits, constitute an extraneous magnitude with respect to the national income......Page 94
R-commodities are endowed with a double nature: they belong (obviously) in the category of intermediate goods but also (less evidently) in the category of final goods......Page 97
A reminder of the new conception of money......Page 100
Sector 1 and sector 2 of the economy create units of real money but sector 3 creates units of nominal money......Page 101
Final proof of the state of affairs by which incomes created in sector 3 are purely nominal......Page 102
The creation of purely nominal incomes is the principal cause of unemployment......Page 107
The measure of unemployment is not necessarily equal to the whole value of the production taking place in sector 3......Page 108
Sometime in the (hopefully none too distant) future, a monetary reform, devised along Ricardian lines, will extirpate the main cause of unemployment......Page 109
4 FROM KEYNES’S TO THE MODERN ANALYSIS OF INFLATION......Page 110
The lessons from the Tract......Page 111
The abandonment of the gold standard and the creation of deposits......Page 114
The value of money......Page 116
Capital inflation and profit inflation......Page 120
THE GENERAL THEORY AND AFTER: THE CONFRONTATION BETWEEN THE ANALYSIS OF THE INFLATIONARY GAP AND THE IDENTITY BETWEEN SUPPLY AND DEMAND......Page 124
A recurring quantitativism......Page 125
The difficulty substantiated: the Keynesian heritage......Page 127
The bilateral character of the monetary operations, a confirmation of the identity of aggregate supply and demand......Page 130
A definition of the inflationary gap......Page 132
NOTES......Page 135
Part III LEARNING FROM THE PAST......Page 137
INTRODUCTION......Page 138
MARX’S THEORY OF THE CYCLE......Page 139
HAYEK’S THEORY......Page 141
RECENT ECONOMIC HISTORY AS A MARX-HAYEK CYCLE......Page 144
SOME ANALYTICAL SUMMING UP......Page 149
NOTES......Page 150
6 UNEMPLOYMENT AND PRICE STABILITY......Page 151
MARSHALL AND THE MONETARY ECONOMY......Page 153
THE MONETARY ECONOMY IN ROBERTSON AND KEYNES......Page 163
CONCLUDING COMMENTS......Page 170
NOTES......Page 171
REFERENCES......Page 177
AUTHOR INDEX......Page 187
SUBJECT INDEX......Page 190