Ml Jhingan Macroeconomics Pdf 27l
Ml Jhingan Macroeconomics Pdf 27l
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Ml Jhingan Macroeconomics Pdf 27l
(499 1635 M.L. Jhingan: Macroeconomic Theory)
499 The Keynesian capitalist approach is based on the notion that government is a takers of advantage of the resources available for exploitation, and that capitalist profit is the most efficient. What the capitalists can produce through their competitive process is added to the existing capital. The government of the UK is the best example of this approach. Under a gold standard it would be impossible for it to take advantage of the existing resources and capital.
(491 1653 M.L. Jhingan: Macroeconomic Theory)
491 This was another stage in the evolution of Keynesian ideas, along with the ideas of Say and the Ricardians in the 19th century. Their views on what can be called the labor side of production may be termed the classicals, and Keynesians those associated with the ideas of Say and the Ricardians.
(523 1652 M.L. Jhingan: Macroeconomic Theory)
523 The arguments about unemployment and the efforts of government to raise employment involve the use of the labour market as an instrument to accomplish certain economic ends. The attempt to apply the doctrine of general equilibrium to the labour market (two examples are given) leads to the conclusion that it would be contrary to the optimisation principle that it is often invoked. Keynes’s opinion is that the rules of the labour market must be such that, as in general equilibrium, the results of successful exploitation should be added to the initial capital stock and retained until the rate of return on capital comes into equilibrium with the rate of interest. Hence Keynsian employment policy should have as one of its objectives the regulation of employment.
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