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standard (opposed by Keynes) in 1925 and his unsuccessful attempt to develop a theory of macroeconomic fluctuations in his … stagnation and high unemployment may have had his belief in a monetary explanation for the Great Depression shaken by the failure … of Britain's departure from the gold standard to cause a rapid recovery and reduce unemployment. This disappointment led …
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This paper evaluates competing theories of wage rigidity against available quantitative and qualitative evidence from the 1930s. I focus on five explanations of wage stickiness in particular: institutional impediments to wage adjustment; labor-supply explanations; efficiency wages; implicit...
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, real GDP fell by around 4.5 percent overall in the reference year 1932 and unemployment rose sharply as a result of Brüning …
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