Pigou Effect - Kalecki's Criticism of The Pigou Effect

Kalecki's Criticism of The Pigou Effect

The Pigou effect was criticized by Kalecki because 'The adjustment required would increase catastrophically the real value of debts, and would consequently lead to wholesale bankruptcy and a " confidence crisis."'

Read more about this topic:  Pigou Effect

Famous quotes containing the words criticism and/or effect:

    To be just, that is to say, to justify its existence, criticism should be partial, passionate and political, that is to say, written from an exclusive point of view, but a point of view that opens up the widest horizons.
    Charles Baudelaire (1821–1867)

    The cities of the world are concentric, isomorphic, synchronic. Only one exists and you are always in the same one. It’s the effect of their permanent revolution, their intense circulation, their instantaneous magnetism.
    Jean Baudrillard (b. 1929)