Re: the aggregate demand curve

[Jim Devine]

On Mon, 14 Mar 1994 07:41:02 -0800 Doug H. said:
>I thought Keynes liked the idea of inflation subtly lowering real wages.
>Is this a Marxist slander against him?

No it isn't. In the GT, Keynes saw inflation exactly in this way.
Tarshis and Dunlop criticized his assumption that real wages fall as
the economy moves toward full employment (based on empirical evi-
dence) and he agreed. But he never (as far as I know) developed
a theory to replace the GT one.

in pen-l solidarity,

Jim Devine   BITNET: jndf@lmuacad    INTERNET: [EMAIL PROTECTED]
Econ. Dept., Loyola Marymount Univ., Los Angeles, CA 90045-2699 USA
310/338-2948 (off); 310/202-6546 (hm); FAX: 310/338-1950