The Robertson connection between the natural rates of interest and unemployment

Boianovsky, Mauro; Presley, John R.

doi:10.1016/j.strueco.2009.03.001

Cited by 14 publications

(7 citation statements)

References 25 publications

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“…18-22), which refers to Robertson ( 1958 ). On Robertson's postwar interest theory, see also Boianovsky and Presley ( 2009 ). 6 The next three paragraphs owe their substance to insightful remarks made by one of the referees who saved the author from some oversimplifi ed conclusions.…”

Section: Expectations Equilibrium Money the Rate Of Interest Amentioning

confidence: 98%

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ROBERTSON’S INDUSTRIAL FLUCTUATION (1915): AN EARLY REAL BUSINESS CYCLE-LIKE APPROACH

Bridel¹

2016

J Hist Econ Thought

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This paper re-examines Dennis Robertson’s ‘real’ business cycle (RBC) theory outlined in his 1915 A Study in Industrial Fluctuation. Even if, for Robertson, cycles find their origin and respond to oscillations in entrepreneurs’ “rational inducement” to invest, in opposition to RBC models in which every outcome is by construction an equilibrium outcome, Robertson discusses in a traditional way the short-run consequences of such exogenous technological shocks. There are no intertemporal equilibrium phenomena in the sense of the RBC approach; cycle theory is organized, for Robertson, around a Marshallian-defined center of gravity (or long-run equilibrium state of rest). For him, the real forces are represented by the gestation period of investment, but also by investment’s durability, its imperfect divisibility, and, allied with these, its intractability. These features of investment lead to excessive outlays upon capital investment, which ultimately depresses their marginal productivity. The inevitable and rational result is a downturn in the capital goods industries and the onset of a cycle.

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Section: Expectations Equilibrium Money the Rate Of Interest Amentioning

confidence: 98%

“…18–22), which refers to Robertson (1958). On Robertson’s postwar interest theory, see also Boianovsky and Presley (2009).…”

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confidence: 99%

ROBERTSON’S INDUSTRIAL FLUCTUATION (1915): AN EARLY REAL BUSINESS CYCLE-LIKE APPROACH

Bridel¹

2016

J Hist Econ Thought

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“…1912;d. 2000) had put forward in the 1930s the concepts of "normal level of activity" and "basic unemployment", respectively, as part of their critical reactions to Keynes's General Theory (Boianovsky and Presley 2009;Boianovsky 2005). Just like ) "natural" and Phelps's (1967) "equilibrium" (or "warranted", as he preferred to call it after 1978) unemployment, Champernowne's "basic" and Robertson's "normal" employment differed from Keynes's (1936) notion of full employment as a fixed upper limit.…”

Section: Natural Rate Connectionsmentioning

confidence: 99%

Cambridge Anticipations of the Natural Rate Hypothesis? Robertson and Champernowne Revisited

Boianovsky

2018

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. 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. Terms of use: Documents in

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“…Much of what is now taken for granted as mainstream macroeconomics derives more from Dennis Robertson than from John Maynard Keynes. For example, that there is an equilibrium (nowadays described as NAIRU) in the labour market, and that any attempt to push demand above that level will just end in spiralling inflation; that the (quasi-) equilibrium 2 real interest rate is determined by real forces of thrift and productivity; that monetary policy is potent, so long as government deficits are not overwhelming, and should be primarily aimed at maintaining price stability; that government intervention to 1 This chapter is partly based on some of our previous works on DHR (see Goodhart (1992); Goodhart and Presley (1994); Boianovsky and Presley (2009); Boianovsky (2014)). fix wage growth (incomes policies) or investment (indicative planning) will usually make things worse; and that the urge to invent, to develop, to improve will prevent stagnation.…”

Section: Introductionmentioning

confidence: 99%

Dennis Holme Robertson (1890–1963)

Boianovsky

Goodhart

2017

The Palgrave Companion to Cambridge Economics

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Dennis Robertson played an important role in the history of Cambridge economics, through his contributions to monetary and business cycle theory, and to utility and welfare. As a macroeconomist, Robertson investigated the dynamic relationship between monetary flows and economic fluctuations. His main contributions to monetary macroeconomics were written between 1915 and 1934. During that period (especially in the 1920s) he and Maynard Keynes interacted extensively. However, after the publication of Keynes's General Theory in 1936, Robertson became critical of what he perceived as shortcomings of Keynesian liquidity preference and equilibrium unemployment theories. From a microeconomic perspective, Robertson made a sustained effort to keep alive the Cambridge Marshallian cardinalist approach to utility, especially after the ordinalist revolution in welfare economics in the 1940s. Robertson claimed that economic theory and policy necessarily involve interpersonal comparisons of utility and welfare.

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The Robertson connection between the natural rates of interest and unemployment

Cited by 14 publications

References 25 publications

ROBERTSON’S INDUSTRIAL FLUCTUATION (1915): AN EARLY REAL BUSINESS CYCLE-LIKE APPROACH

ROBERTSON’S INDUSTRIAL FLUCTUATION (1915): AN EARLY REAL BUSINESS CYCLE-LIKE APPROACH

Cambridge Anticipations of the Natural Rate Hypothesis? Robertson and Champernowne Revisited

Dennis Holme Robertson (1890–1963)

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