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The "natural rate hypothesis" is usually ascribed to ideas put forward by M. Friedman and E. Phelps between 1966 and 1968. It postulates that changes in nominal aggregate demand affect aggregate output because agents cannot temporarily distinguish relative from general price movements when they...
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This essay analyses early reactions put forward by Cambridge economists David Champernowne and Joan Robinson to J. M. Keynes`s treatment of the labour market in The General Theory. Champernowne`s and Robinson`s critical reactions represented attempts to fill the gap of the determinants of...
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