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Economic policy/Keynesianism: Keynesianism interprets the observed negative correlation between the unemployment rate and the rate of inflation in such a way that economic policy could buy low unemployment at the price of high inflation, on the theoretical basis of Keynes' stated downward rigidity of nominal wages: if real wages are too high and there is therefore unemployment, but a reduction in nominal wages is excluded, then real wages can only be reduced to a level compatible with full employment by raising the price level, i.e. by pursuing an expansive monetary policy._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
Politik und Wirtschaft: Ein integratives Kompendium Wiesbaden 2018