Abstract
This chapter relates to John Cornwall’s work in two major ways. First, we develop a conflict model of inflation which is similar in spirit to Cornwall’s (1990) claim that there exists an inflationary bias in capitalism unless decentralized wage- and price-setting behaviour is coordinated by means of an incomes policy. Second, Cornwall has long proclaimed the importance of investment spending for maintaining full employment (see, for example, Cornwall, 1979), a thesis that is very much in tune with one of our main propositions regarding the importance of capital shortages in creating unemployment.
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© 1999 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Arestis, P., Mariscal, I.BF. (1999). Wage Determination, Capital Shortage and Unemployment: A Comparison between Germany and the UK. In: Setterfield, M. (eds) Growth, Employment and Inflation. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-27393-5_17
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DOI: https://doi.org/10.1007/978-1-349-27393-5_17
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