The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Incomes Policies

  • Rupert Pennant-Rea
Reference work entry


Keynes’s General Theory attacked the foundation of the quantity theory of money – the proposition that the level of activity is determined by real forces. But though Keynes provided a new theory of output, he offered no systematic explanation of the price level. He simply took money wages as given, and argued that their level was the key determinant of all nominal magnitudes.

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© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Rupert Pennant-Rea
    • 1
  1. 1.