X-Nico

unusual facts about aggregate demand



Beyond the Crash

Samuel Brittan in The Financial Times opines that Brown's message on the continual need for aggregate demand to be maintained very much needs to be heard, especially by European politicians who may be overly influenced by deficit cutting fiscal fundamentalism.


see also

Employment Act of 1946

The theory, set forth by economist John Maynard Keynes and his American disciples such as Alvin Hansen at Harvard, contends that unemployment is caused by insufficient aggregate demand relative to the possible aggregate supply generated by full employment.

Involuntary unemployment

Following earlier disequilibrium research including that of Robert Barro and Herschel Grossman, work by Edmund Malinvaud clarified the distinction between classical unemployment, where real wages are too high for markets to clear, and Keynesian unemployment, involuntary unemployment due to inadequate aggregate demand.