This chapter shows that we are on the way to a steady state theory, which is not substantially different from that which has become conventional. In the steady state, where the structure of the economy is the same in every time-period, time has been so nearly abolished that the passage from the assumption of a ‘sectoralized’ technique to our assumption of a technique that is time-articulated cannot make much difference. The first part of the chapter deals with the Fixwage theory. It then turns to what is considered its companion. Instead of taking the wage to be fixed and employment variable, the conditions for the maintenance of Full Employment of an exogenously given supply of labour is examined, the wage (the real wage) being allowed to be variable.
Keywords: steady state theory; Fixwage theory; wages; labour; employment
Chapter. 6768 words.
Subjects: Macroeconomics and Monetary Economics
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