The Fall and Rise of Keynesian Economics

By John Eatwell; Murray Milgate | Go to book overview

9
Effective Demand and
Disguised Unemployment

The two issues that dominated the employment experience of the major industrial countries between the 1970s and the 1990s were the common rise in unemployment they all experienced; and the diversity in the scale and content of that rise between the economies of Western Europe, on the one hand, and those of Japan and North America (particularly the United States), on the other. A satisfactory explanation of this outstanding feature of the macroeconomic performance of the industrial economies must explain both.1

Conventional approaches sought to explain the differential employment outcomes of Europe and North America primarily in terms of imperfections in the operation of labor markets. The clear implication of such explanations was that if the labor-market imperfections had been absent, or less pronounced, then the economy would have converged to full employment.2 But these old-fashioned explanations now seem unconvincing. While a wide variety of factors affected the macroeconomic landscape—including the age structure of the population, government employment schemes, labor hoarding, and employment in the black economy—the most important determinant of the common experience of growing unemployment was the slowdown in the growth of aggregate demand that occurred throughout the major industrialized economies in the 1980s. Furthermore, it seems that the differential experience of the major industrial countries in this period was attributable to the interaction between changes in the growth of effective demand and national labor-market structures, rather than imperfections per se.

-174-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The Fall and Rise of Keynesian Economics
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 423

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.