Abstract
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.
‘Employment is not a function of real wages in the sense that a given degree of employment requires a determinate level of real wages, irrespective of how the employment is brought about.’ (JMK, xiii, p. 180)
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References
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© 1988 Wissenschaftszentrum Berlin, Internationales Institut für Management und Verwaltung: Arbeitsmarktpolitik
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Kregel, J.A. (1988). The Theory of Demand and Supply of Labour — The Post-Keynesian View. In: Kregel, J.A., Matzner, E., Roncaglia, A. (eds) Barriers to Full Employment. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-19233-5_3
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DOI: https://doi.org/10.1007/978-1-349-19233-5_3
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