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The analysis, can be shown on a following important fragment, where prof. PiguSummarises the point of view (the decree. It., with. 252): "at availability it is perfect
Free competitiveness among hired workers and at availability it is perfect Mobile work character of communication (between rates of real wages, On which workers insist, and function of demand for work) will be very much
The simple. The strong tendency to an establishment of the such will constantly act
Relations between labour rates and demand that all were, are taken. Hence, under invariable conditions really all will be taken.
From here it is possible to draw a conclusion that unemployment existing at any time
Entirely speaks continuously occurring changes in conditions of demand, And frictional hindrances interfere with, that corresponding adaptations Wages were made instantly ".
The author concludes (the decree. It., with. 253) that unemployment first of all
It is caused by a policy of wages who cannot in a due measure To adapt to changes of function of real demand for work.
So, prof. Pigu thinks that in long-term aspect unemployment it is possible
To treat wage controls (120). I assert that the real Wages (with the proviso only about a minimum established by the limiting Burden of employment) first of all it is defined not "by adaptations Wages "(though also they can have certain significance), and others Forces of our system, and some of them (in particular the relation between
The schedule of a marginal efficiency of the capital and norm of percent) prof. Pigu
At all it was not possible to include in the formal scheme, as far as I understand.
However, when in the end prof. Pigu passes to "to the Reasons
Unemployments ", he speaks about fluctuations in a demand condition approximately as,
As it is done by me. But it identifies a condition of demand with Function Real
Demand for Work, forgetting about it gives what narrow definition to the last.
After all function of Real Demand for Work depends, by its definition (as we It saw above), only from two factors, namely: (1) relations at
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