Cambridge anticipations of the natural rate hypothesis? Robertson and Champernowne revisited

Arbeitspapier

The "natural rate hypothesis" is usually ascribed to ideas put forward by M. Friedman and E. Phelps between 1966 and 1968. It postulates that changes in nominal aggregate demand affect aggregate output because agents cannot temporarily distinguish relative from general price movements when they face imperfect information. This paper shows how some of its key conceptions may be found in contributions by Cambridge economists D.H. Robertson and D.G. Champernowne advanced in the 1930s as critical responses to J.M. Keynes's General Theory. Robertson and Champernowne devised the concepts of "normal" and "basic" unemployment rates respectively, expressed as equilibrium positions when workers' real wage expectations are satisfied. Robertson combined that with his previous discussion of monetary misperceptions, whereas Champernowne argued how equilibrium may be achieved through inflation/deflation acceleration. Unemployment homes in on its "natural" equilibrium level only if the market rate of interest converges to its (Wicksellian) natural rate, as Robertson stressed.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: CHOPE Working Paper ; No. 2018-09

Klassifikation und Themen

• Klassifikation: Wirtschaft ; History of Economic Thought: Macroeconomics ; History of Economic Thought: Individuals: General ; Price Level; Inflation; Deflation ; Business Fluctuations; Cycles
• Thema: natural rate hypothesis ; Robertson ; Champernowne ; basic unemployment ; normal output ; acceleration

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Boianovsky, Mauro
• Ereignis: Veröffentlichung
• (wer): Duke University, Center for the History of Political Economy (CHOPE)
• (wo): Durham, NC
• (wann): 2018

Weitere Informationen

• Handle: http://hdl.handle.net/10419/179671
• Letzte Aktualisierung: 10.03.2025, 11:42 MEZ