Unemployment during the Inter-War period

The 1919-20 reduction in working hours accompanied by the maintenance of the weekly wage has been argued to underlie the rapid rise in unemployment in Britain in the early 1920s and some of the persistence of unemployment through to 1939. To what extent can these aspects of interwar unemployment be attributed to this supply-side change? Read more about Unemployment during the Inter-War period[…]

Post-Keynesianism Part II

Day 1 – Talk 2 After our Introduction to Post-Keynesianism from Engelbert Stockhammer we were given a talk by Ozlem Onaran, from Greenwich University, on “Aggregate demand, income distribution and unemployment”. She begins by adding to Engelbert’s introduction, highlighting that fundamental uncertainty can lead to path dependency – that is decisions made today (as a Read more about Post-Keynesianism Part II[…]

What is hysteresis?

I recently wrote an article on the situation in Greece, and mentioned the effects of hysteresis which I will expand upon in this blog article. Hysteresis is a theory developed by the Keynesians to explain why laissez-faire economic policy may be damaging in the long run. Neoclassicalists would argue that during an economic downturn, when Read more about What is hysteresis?[…]

Evaluate macroeconomic policies which may be used to reduce the level of unemployment in the UK

This is an exam question from the Edexcel Unit 2 June 2012 Paper. Have a go at it yourself and then compare with the essay below (you can also check out the mark scheme). I was awarded 30/30 for the essay below, feel free to add any further suggestions in the comment box. I don’t seem Read more about Evaluate macroeconomic policies which may be used to reduce the level of unemployment in the UK[…]

The Costs and Distributional Effects of Unemployment

The classical view on unemployment says that there are only unemployed people who are not able and willing to work at the going wage rate. So if people would accept a lower wage they would find jobs. In this view all unemployment is a short-term problem and the best solution is laissez faire – leave Read more about The Costs and Distributional Effects of Unemployment[…]