THIS DOI METADATA WAS LAST UPDATED: 2024-02-23 09:31
Full Title
HISTORY OF ECONOMIC THOUGHT AND POLICY
Publisher
FrancoAngeli
ISSN
2240-9971 (Printed Journal)
2280-188X (Online Journal)
Journal Issue Number
2
Journal Issue Designation
2
Journal Issue Date
2023
Full Title
Richard Lipsey and the "Tyranny" of a Unique Labour Market Equilibrium
By (author)
First Page
5
Last Page
29
Language of text
English
Publication Date
2024/01
Copyright
2023 FrancoAngeli srl
Main description
The article discusses Richard Lipsey's (2000a, 2000b, 2010, 2016) criticism of the uniqueness of the macroeconomic equilibrium at constant inflation postulated by new-classical macroeconomic models. Lipsey's position is analysed in the light of his early contribution to the debate on the Phillips curve (Lipsey 1960). There, as later, Lipsey's argument rests on the assumption that the labour market, though characterised by a unique demand-and-supply equilibrium, may persist in disequilibria in the long run. Such proposition is discussed critically. Lipsey's analysis can be seen as a clear expression of the fundamental theoretical difficulty in reconciling Keynesian macroeconomic analysis with the neoclassical postulates.
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