Smith, Ron; Zoega, Gylfi - In: International Review of Applied Economics 23 (2009) 4, pp. 427-444
In Keynes' General Theory, investment determines effective demand, which determines unemployment and the labour market … the speed at which unemployment adjusts to it. Investment is mostly ignored as a key variable behind the problem of high … unemployment, despite a strong empirical association between investment and unemployment. We discuss the evolution of the …