WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICS
ABSTRACT This paper discusses Keynes’ and Kalecki’s rejection of the notion that downward wage flexibility would ensure full employment, recollecting also Steindl’s stagnation theory, which extends to the long-run Kalecki’s ideas. It then considers the association between wage fall and currency depr...
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| Format: | Article |
| Language: | English |
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Universidade Federal do Rio de Janeiro
2020-09-01
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| Series: | Revista de Economia Contemporânea |
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| Online Access: | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1415-98482020000200211&tlng=en |
| _version_ | 1819284958333632512 |
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| author | Julio López G. |
| author_facet | Julio López G. |
| author_sort | Julio López G. |
| collection | DOAJ |
| description | ABSTRACT This paper discusses Keynes’ and Kalecki’s rejection of the notion that downward wage flexibility would ensure full employment, recollecting also Steindl’s stagnation theory, which extends to the long-run Kalecki’s ideas. It then considers the association between wage fall and currency depreciation and examines the Latin American contribution to the arguments of why currency devaluation may depress aggregate demand. Afterwards, it briefly reflects on the economic policy consequences that the authors studied here inferred from their analysis. It finally adds a succinct remark on the author’s empirical findings on this issue. |
| first_indexed | 2024-12-24T01:55:38Z |
| format | Article |
| id | doaj.art-983395d49e6c456db14f0ed8c2e409b7 |
| institution | Directory Open Access Journal |
| issn | 1980-5527 |
| language | English |
| last_indexed | 2024-12-24T01:55:38Z |
| publishDate | 2020-09-01 |
| publisher | Universidade Federal do Rio de Janeiro |
| record_format | Article |
| series | Revista de Economia Contemporânea |
| spelling | doaj.art-983395d49e6c456db14f0ed8c2e409b72022-12-21T17:21:36ZengUniversidade Federal do Rio de JaneiroRevista de Economia Contemporânea1980-55272020-09-0124210.1590/198055272422WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICSJulio López G.https://orcid.org/0000-0003-3798-4771ABSTRACT This paper discusses Keynes’ and Kalecki’s rejection of the notion that downward wage flexibility would ensure full employment, recollecting also Steindl’s stagnation theory, which extends to the long-run Kalecki’s ideas. It then considers the association between wage fall and currency depreciation and examines the Latin American contribution to the arguments of why currency devaluation may depress aggregate demand. Afterwards, it briefly reflects on the economic policy consequences that the authors studied here inferred from their analysis. It finally adds a succinct remark on the author’s empirical findings on this issue.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1415-98482020000200211&tlng=endistributiongrowthwagesexchange rateKaleckian economicsKeynesian economicsLatin America |
| spellingShingle | Julio López G. WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICS Revista de Economia Contemporânea distribution growth wages exchange rate Kaleckian economics Keynesian economics Latin America |
| title | WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICS |
| title_full | WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICS |
| title_fullStr | WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICS |
| title_full_unstemmed | WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICS |
| title_short | WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICS |
| title_sort | wage flexibility exchange rate competitiveness and full employment the first heretics |
| topic | distribution growth wages exchange rate Kaleckian economics Keynesian economics Latin America |
| url | http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1415-98482020000200211&tlng=en |
| work_keys_str_mv | AT juliolopezg wageflexibilityexchangeratecompetitivenessandfullemploymentthefirstheretics |