tag:blogger.com,1999:blog-6245381193993153721.post7246907606466696546..comments2024-03-17T00:23:24.896-07:00Comments on Social Democracy for the 21st Century: A Realist Alternative to the Modern Left: Alfred Marshall on the Deflation of 1873–1896Lord Keyneshttp://www.blogger.com/profile/06556863604205200159noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-6245381193993153721.post-50427484240817140782014-10-15T07:31:55.129-07:002014-10-15T07:31:55.129-07:00Yes, assuming that the quantity demanded doesn'...Yes, assuming that the quantity demanded doesn't rise to offset this. <br /><br />In deflation caused by falling demand or even increased production and competition, an individual firm may see its sales volume fall too, as prices fall.Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-63863171848671210492014-10-15T07:28:24.046-07:002014-10-15T07:28:24.046-07:00assuming the firm can't sell more units at the...assuming the firm can't sell more units at the lower price, resulting in them still receiving the same total revenue as before. <br /><br />Correct?Philippenoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-86412550575491438432014-10-15T07:23:21.693-07:002014-10-15T07:23:21.693-07:00Of course, Marshall's "depression of prof...Of course, Marshall's "depression of profits" might mean profits in nominal terms, not real, inflation-adjusted profits -- but even here this would support the idea that businesses don't like even a fall in nominal profits either, just as workers don't like a fall in nominal wages. The neoclassicals call this the "money illusion".Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-70836993913752913962014-10-15T07:17:27.683-07:002014-10-15T07:17:27.683-07:00If a firm produces some product whose sale price f...If a firm produces some product whose sale price falls, and the firm can't reduce non-labour factor input costs and wages are hard to cut, then profits will be diminished.<br />Lord Keyneshttps://www.blogger.com/profile/06556863604205200159noreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-54087578624360030772014-10-15T06:47:39.225-07:002014-10-15T06:47:39.225-07:00"The 1876–1880 unemployment figures are very ..."The 1876–1880 unemployment figures are very strange, because the real GDP estimates for this period (in Maddison 2003) show real output growth in all years but 1879"<br /><br />Was this maybe due to large population growth?Philippenoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-50166125021171993092014-10-15T06:46:15.539-07:002014-10-15T06:46:15.539-07:00LK
Why would sticky nominal wages in the face of ...LK<br /><br />Why would sticky nominal wages in the face of price deflation have squeezed profits?Philippenoreply@blogger.comtag:blogger.com,1999:blog-6245381193993153721.post-23088580210079698862014-10-14T16:41:43.322-07:002014-10-14T16:41:43.322-07:00LK,
This question is off topic, but do you consid...LK,<br /><br />This question is off topic, but do you consider Rod O'Donnell to be a Post-Keynesian economist?<br /><br />If not, to which school does O'Donnell belong?Anonymousnoreply@blogger.com