The Theory of Demand and Supply of Labour — The Post-Keynesian View
The problem of the relation of wages to employment is certainly as old, and as widely debated, as the relation between money and prices proposed in the Quantity Theory of money. It is significant that Keynes broke with both positions (which he considered as being analytically equivalent) in his Treatise on Money. The quotation given above, which is still a fair representation of the post-Keynesian position, dates from a September 1930 memo for the Economists Advisory Council which Keynes prepared just after completion of work on the book.
KeywordsLabour Market Real Wage Demand Curve Aggregate Demand Full Employment
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