Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
In other words, if you enforce clearing in the money and product markets, you get clearing in the labour market.

Yes, that's Walras' Postulate. It also works the other way around: If you enforce clearing in the labour and goods market through a determined full-employment policy, then you make financial market clearing easier (because then all you have to do is prevent large discontinuities, and Walras' Postulate will take care of the rest).

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Thu Nov 3rd, 2011 at 12:05:38 PM EST
[ Parent ]

Others have rated this comment as follows:


Occasional Series