Wage cuts not a solution to unemployment, new study reveals
The paper examines how Patinkin interpreted Keynes' ideas on unemployment in the General Theory Chapter 19. Patinkin disagrees with Keynes on key points, suggesting that wage cuts may not be a good solution to unemployment. He believes that people may choose to be unemployed for leisure, and that nominal rigidities and competitive adjustments play a role in involuntary unemployment. Patinkin's views influenced the development of the New Keynesian program, which moved further away from Keynes' original ideas.