WAGE FLEXIBILITY, EXCHANGE-RATE COMPETITIVENESS AND FULL EMPLOYMENT: THE FIRST HERETICS // FLEXIBILIDADE SALARIAL, COMPETITIVIDADE CAMBIAL E PLENO EMPREGO: OS PRIMEIROS HEREGES

Authors

  • Julio López G.

Keywords:

distribution, growth, wages, exchange rate, Kaleckian economics, Keynesian economics, Latin America // distribuição, crescimento, salários, taxa de câmbio, Kalecki, Keynes, América Latina

Abstract

ABSTRACT: This paper discusses Keynes’ and Kalecki’s rejection of the notion that downward wage flexibility would ensure full employment, recollecting also Steindl’s stagnation theory, which extends to the long-run Kalecki’s ideas. It then considers the association between wage fall and currency depreciation and examines the Latin American contribution to the arguments of why currency devaluation may depress aggregate demand. Afterwards, it briefly reflects on the economic policy consequences that the authors studied here inferred from their analysis. It finally adds a succinct remark on the author’s empirical findings on this issue.

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RESUMO: Este artigo discute a rejeição de Keynes e Kalecki à noção de que a flexibilidade do salário para baixo asseguraria o pleno emprego, recordando também a teoria da estagnação de Steindl, que se estende às ideias de Kalecki de longo prazo. Em seguida, o artigo considera a associação entre queda salarial e depreciação cambial e examina a contribuição latino-americana para os argumentos de porque a desvalorização da moeda pode deprimir a demanda agregada. Posteriormente, reflete brevemente sobre as consequências da política econômica que os autores estudados aqui inferiram de suas análises. Por fim, acrescenta uma observação sucinta sobre as descobertas empíricas do autor sobre essa questão.

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Published

2020-08-19

Issue

Rev. Econ. Contemp., v. 24, n. 2, mai./ago. 2020

Section

Artigos

License

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