| Author: | Dixon, H. |
| Title: | Controversy: the macroeconomics of unemployment in the OECD |
| Journal: | Economic Journal
1998 : MAY, VOL. 108:448, p. 779-781 |
| Index terms: | MACROECONOMICS UNEMPLOYMENT OECD |
| Language: | eng |
| Abstract: | As with other paradigms in economics, theories of unemployment adapt to changes in the economic environment. Before the Great Depression of the 1930s, most economists did not acknowledge the presence of involuntary unemployment. Market forces guaranteed market clearing in the goods and labour markets, so that unemployment could not exist. The Great Depression changed this attitude, and the leading paradigm that effective demand management could keep the economy on its full employment track gained momentum. |
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