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‘New Keynesianism’: Will the Unions Like the S.D.P. Cure?
Author(s) -
BURTON JOHN
Publication year - 1982
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.1982.tb01435.x
Subject(s) - neglect , stagflation , independence (probability theory) , economics , government (linguistics) , power (physics) , state (computer science) , arbitration , wage , face (sociological concept) , keynesian economics , political economy , law and economics , political science , labour economics , law , sociology , medicine , monetary policy , social science , linguistics , statistics , philosophy , physics , nursing , mathematics , algorithm , quantum mechanics , computer science
Professor James Mead's proposals to induce the emergence of the economy from stagflation by imposing ‘not quite compulsory’ wage restraint neglect the power of the unions to ignore it. Government courts of arbitration would be unable to maintain their independence in face of union pressure. And they would not gather sufficient information about the state of the continuously changing economy to make accurate and impartial decisions.