Remember: Sticky-wage Keynesianism is a supply side theory

posted by
March 18, 2013
by Garett Jones  
Posted in Commentary

"I think both the supply side and demand side stories have a lot to be said for them, and real life is likely a mix of both plus some of neither, but that's not what I'm here to write about today. Instead, I'm here to remind you that one popular brand of Keynesianism--sticky wage Keynesianism--should be lumped in with the supply side theories of recessions rather with the demand side theories. Sticky wage Keynesianism says workers hate wage cuts so much that businesses dare not cut wages, even in a competitive market." (03/17/13)  

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