EconWatch.com > Keynes: Wage Flexibility and Full Employment

[Grasping Reality with Both Hands: Brad DeLong's Semi-Daily Journal] From Chapter 19: Changes in Money-Wages: Thus the reduction in money-wages will have no lasting tendency to increase employment except by virtue of its repercussions either on the propensity to consume for the community as a whole, or on the schedule of marginal efficiencies of capital, or on the rate of interest. There is no method of analysing the effect of a reduction in money-wages, except by following up its possible effects on these three factors.