Guha, Subrata - In: Economics Bulletin 31 (2011) 1, pp. 66-74
In a 1975 paper entitled 'Keynesian Models of Recession and Depression' James Tobin sought to formalize in a dynamic model Keynes' argument that unemployment could persist in an economy with flexible wages and prices. In the course of his analysis Tobin presented, without proof, a 'critical...