‘…if a particular producer … cuts wages then, so long as others do not follow suit, that producer is able to get more trade of what trade is going. But if wages are cut all round, the purchasing power of the community as a whole is reduced by the same amount as the reduction of costs; and then again, no one is further forward. Thus …the reduction of wages [does not] serve in itself to restore equilibrium’ (Keynes (1930), The Great Slump).
Critically discuss this statement and its repercussions for deflationary policies.
Type of service-Academic paper writing
Type of assignment-Essay
Pages / words-2 / 550
Academic level-Sophomore (College 2nd year)
Language style-US English