Can slowly adjusting wages explain involuntary unemployment? A critical re-examination of Patinkin's theory of involuntary unemployment

In this paper I evaluate the logical consistency of Patinkin's claim that involuntary unemployment can result from slow speed of adjustment. I argue that Patinkin's argument is flawed because of an unjustified breach of continuity in the trade technology assumption between the microeconomic and the macroeconomic parts of Money, Interest, and Prices. Finally, I claim that the issue of flexibility versus rigidity should be linked to the trade technology assumption. As soon as a centralized trade technology is assumed, flexibility automatically comes in.