Common Sense Economics

INDEX

A  |  B  |  C  |  D  |  E
F  |  G  |  H  |  I  |  K
L  |  M  |  N  |  O  |  P
R  |  S  |  T  |  U  |  W

A

Acceleration principle, 139–144;

and business cycles, 167–168

Agriculture, 42, 177

Analysis, 25–26, 115–116, 142

Anticipatory buying, 131

B

Balance sheets, 25

Bank deposits, interest on, 219;

and money turnover, 134–135

Bank rate, 108–110, 162–163

Banknotes, 114–115, 118, 132;

during business cycle, 174–175

Banks, 28, 38;

and business cycles, 168–169;

cash holdings in, 107;

cash withdrawals from, 134;

during deflation, 137;

growth financed by, 123;

and inflationary credits, 132, 151–152, 162;

lending restricted by, 136;

loss of confidence in, 135–136;

and price level, 130;

private, 114–115;

savings by, 118–119

Bear markets, 182–183, 191, 193, 199–200, 202, 208–209, 212

Black markets, 107

Bonds, 62;

government, 108, 110, 156–157;

liquidity factor in, 63;

prices of, 100–101, 186, 187–190, 195;

yields on, 104, 186, 196

Brokers, 216

Budget deficits, 110

Budget surpluses, 110–111

Bull markets, 182–183, 191, 195, 198–201, 208–212

Business cycles, x, 94, 108, 112, 130, 159–191, 318;

consciousness of, 226–227;

definitions of, 159, 176;

and inflation, 224–226;

interest rates and, 168–169, 172–175;

savings and, 86;

share prices during, 187–191;

stabilization of, 180–183, 228, 231;

theories of, ix–x, 66, 109, 160–168

Business management, x–xi

Buyers, effect of inflation on, 134

Buyers’ strikes, 138, 173

C

Capital, accumulation of, and production, 27–34;

during business cycles, 176–177;

fixed, 40, 48–52, 123, 178;

frozen, 101;

growth theories and, 123–127;

idle, 178;

and labor, 38–39, 124–125;

labor-saving effect of, 88–89;

need for, 126;

productivity of, 41–55, 78, 80–82, 169;

substituting for labor, 81–82;

use of, income distribution and changes in, 91–92;

variable, 40, 48–52, 123;

venture, taxes and, 91

Capital demand, 87–89, 91, 100–102, 160, 169

Capital goods, 26, 31, 99;

land as, 43;

over-investment in, 161–162;

and production detours, 139;

spending on, 140

Capital structure, 116, 119, 174–176

Capital supply, changes in, 83–84;

and demand for labor, 89, 124;

fixed, 125;

by inflationary credit expansion, 123;

and interest rate, 85;

and security prices, 100–103

Capitalists, 26–27, 41;

and corporation taxes, 103;

and entrepreneurs, 27, 31;

and income taxes, 90–91, 104;

and interest rates, 78;

and production, 55

Cash, 107, 113–115, 175

Cash reserves, 106

Central Banks, 109–111, 118–119;

and business cycles, 168–169, 171–172, 174, 186;

during inflation, 141, 145, 151–152;

power of, 109, 114;

reserves of, 106–108, 115

Cheap money policy, 110

Checking accounts, 113–115, 118, 132, 134–135

Child labor, elimination of, 72–74

Circular flow analysis, 26, 115–116, 142

Clark, Colin, 229

Coal fields, 42, 45

Commercial bills, discount rate for, 108

Community, the, capital of, 26, 37;

income of, 25, 85–86;

payment habits of, 107;

and savings, 112;

standard of living of, 86

Competition, 21–22, 81

Consumer goods, 1, 6, 26, 31, 35, 99;

change of taste and, 66, 98;

and credit supply, 139–140;

demand for, 119;

spending on, 140

Consumption, and business cycles, 172;

changes in, 66, 92–93, 96–97;

forced restriction of, 119;

future, 84–85;

investment and, 93–94, 139–144;

lack of, 111–112;

production and, 5–16, 28, 34–36, 56;

savings and, 84;

total, 67;

under-, 160–161

Consumption exchange, 34–35, 54–55

Corporate earnings, 90–91, 102, 156;

in deflation, 158;

and interest rates, 102;

net, after taxes, 103;

share prices and, 190–191, 197–198

Corporation taxes, 90–91, 102–103

Cost of living, rise in, 145

Costs, fixed, 51–54, 60;

marginal, 52–53;

and revenue, equality of, 56–57;

unit, 51–54, 178–179;

variable, 51

Credit, bank, 114–115;

carry-over, 137–138, 172–173;

during depression, 109;

inflationary, 114–115, 132–133, 156;

new, ix;

non-inflationary, 132–133;

from savings, 78;

short-term, 62;

in stationary economy, 62;

during upswing, 108, 131, 169–171;

use of, 33, 38–39

Credit contraction, ix–x, 117

Credit demand, 109, 111, 121–122, 131, 158, 163, 169–172, 176;

deficient, 113;

during deflation, 136–138, 162;

weak, death traps and, 111

Credit expansion, ix–x, 117;

inflationary, 123–128, 145, 162, 236;

purchasing power and, 119

Credit market, and budget surpluses, 110;

during depression, 111, 136–138;

interest rates on, 108–109;

supply and demand on, 136

Credit restrictions, 108–109, 227–228

Credit supply, 109, 111, 121–122, 126, 132–134, 139–141, 169–170, 172, 176;

theory, 162–164

Creditors, 145, 154

Crises, over-saving and, 111

Currency inflation, 222

Cyclical deflation, 111–112

D

Daw theory of investment, 216

Death traps, 93, 96, 163, 169;

large, 107–108, 111, 135;

small, 106–107, 174; (see also Hoarding)

Debts, 27, 31

Debtors, 154–156, 175

Deficit spending, 111, 180, 182, 219

Deficits, 93, 110

Deflation, x, 64–65, 93, 96–97;

and business cycle, 159–160, 170–173;

causes of, 136;

Central Banks and, 109–110, 114;

credit demand in, 136–138, 162;

cyclical, 111–112;

delayed, 173;

economy in, 105–158;

effect of, analysis of, 115–117;

employment and, 94–95, 117;

end of, 151;

hoarding and, 136;

money, 108, 136;

preconditions of, 105;

of price level, 105, 119–120, 130;

production in, 130;

profits and losses in, 155;

and recovery, 170;

savings during, 138;

secular (stagnation), 112–113, 184;

short-term, 64;

under-consumption and, 161;

wages and, 147–150

Deflationary gaps, 109

Demand, during business cycle, 160;

consumption and investment changes, effect on, 92–93;

“effective,” ix;

income and, 54–55;

misjudgment of, 59-60;

supply and, 3–4, 8–13, 98, 119;

wealth of nations and, 65

Demand curves, 8–10, 15;

for credits, 39–40, 113;

for goods, 119;

for labor, 75–77, 79–80, 117

Demand theory of employment and production, 67

Democratic party, 232, 236

Depression, vii, xi, 175;

and deflation, 111–112;

end of, 170;

hoarding during, 107;

interest rate during, 108–109, 187;

inventories accumulated during, 120;

of production, without deflation, 233–234;

prosperity and, 65, 134, 160, 176, 182–183, 218–219, 226–227;

share prices during, 187–191;

of the ‘30s, 113, 147–148; (see also Deflation)

Diminishing marginal returns, law of, 40, 44, 48, 75, 82

Diminishing marginal utility, law of, 2, 7

Discount rate, business cycles and, 172, 186;

for commercial bills, 108;

during inflation, 145, 151, 157;

and interest rate, 133, 174;

and market rate, 133, 174;

raising of, 110, 121, 128, 133, 151, 163

Dividends, 62–63, 188, 193–195, 197–201

Dow Jones Index, 198

E

Easy money policy, 163, 184–185, 187, 232–233

Ebb and Flow of Investment, The, 199

Economic advisers, 181

Economic data, variability of, xi

Economic laws, of diminishing marginal returns, 40, 44, 48, 75, 82;

of diminishing marginal utility, 2, 7;

Keynesian psychological, 139;

Say’s, 6, 64–66, 109, 160

Economic Stabilization in an Unbalanced World, 148n.

Economic Theory of Bank Credit, viii, xii

Economics, fundamental problems in, 35;

knowledge of, importance of, x;

of nature, 1–13, 18–20;

theories of, viii–ix, xi–xii

Economics of Illusion, The, viii, 67n., 107n., 166n., 180n.

Economists, classical, 48, 146;

and the future, 97–98;

Keynesian, vi, 93, 97, 111, 113, 144, 149–150, 169, 219, 228, 230, 235–237;

neo-classical, 117, 217–219, 235;

New Deal, 97, 143, 229–231, 235, 237

Economy, the, barter, 20, 24, 37;

capitalist, xii, 29–33, 35;

changing, 5, 64–104;

in equilibrium, costs and revenue in, 56–57;

forces affecting, ii, xii;

gambling as factor in, 207–209;

in inflation and deflation, 105–158;

money, 22–26, 37;

Robinson Crusoe, x, 6, 10, 18, 34;

stationary, ix, 1–63;

time element in, 25–28;

with two workers, 10–18, 34

Efficiency of workers, 20–21

Employment, basic law of, 68–72;

and business cycles, 177;

consumption and investment changes and, 96–97;

decrease in, capital and, 50;

demand theory of, 117, 217;

effects of inflation and deflation on, 117;

full, vii, 67, 122, 228;

increase in, capital and, 27–28, 94–95;

during inflation, 224;

Keynes’ theory of, 160, 217, 235;

labor supply and, 70–71, 73–74;

production and, 67, 76, 121–122;

productivity of labor and, 79–80, 82–83;

wages and, 67–68

Entrepreneurs, anticipation of future by, 98–99;

and capitalists, 27, 31;

competition among, 81;

definition of, 18;

during deflation, 148–150;

functions of, 18–22;

income tax and, 90;

during inflation, 151, 153–154;

investment by, 92;

land and, 42–46;

money and, 23–25, 28, 31, 38–39;

productivity and, 20–22;

profit and, 21–22, 24, 57–60, 77–78, 129–130

Equilibrium theory, 144

Escalator clauses, 146

Europe, 97, 113, 131

Exchange of goods, 13–18, 23–25

F

Farmers, 43

Feather bedding, 80

Firm, the, optimum size of, 50–51

Forecasts, economic, 217–218, 226, 229, 237;

stock market, 198–199, 214–216

Foreign exchange, 172, 174

Foreign trade, 105

Free markets, 80

Functional finance, 180, 231–232

Future, the, anticipation of, 97–99;

changes in, 97–99;

economic, 217–219;

profits in, 100;

spending in, 142–144;

and stock market, 198–199, 203–204, 214–216

G

General Motors, 205–206

General Theory of Employment, Interest and Money, viii, 26, 65, 87, 94, 97, 115, 166, 185, 206–207

Germany, 97, 145–146, 152–154, 158, 234

Gesell, Silvio, 161

Goods, exchange of, 13–17, 26;

intermediate, purchase of, 55–56

Government bonds, 108, 110

Government debts, 110, 232

Great Britain, 110, 185, 186

Gross national product, 67

Ground rent, 46–47

Growth theories, 123–127

H

Hansen, Alvin Harvey, 147–148, 231

Harris, Professor, 231, 233

Health, labor laws and, 74

Hoarding, 106–107, 135–136, 174–175, 186

Hume, David, 205

Hurrying, 131–134;

business cycles and, 164–165;

and credit demand in inflation, 136–138;

inventories during, 136;

spending and, 139;

and stock market, 157–158;

and velocity of money turnover, 135

I

Immigration, labor market and, 69

Income, community, 85–86;

distribution of, 6, 54, 55, 66, 82–83, 91–92, 138–139;

fixed, 153;

high, 138;

individual, 25–26, 35–36, 85;

long-term, from shares, 192–195;

low, 138;

national, 25, 138;

real, 25, 138;

saving and, 85, 138

Income statements, 25

Income taxes, 90–91, 103–104, 113

Indifference curves, 8

Industrial Fluctuations, 164

Inflation, vii, 64–65, 93–94, 96;

and apparent profits, 129–130;

and business cycles, 159–160, 170–173, 224–226;

Central Banks and, 109–110, 114, 145, 151;

cheap money policy and, 110;

credit supply in, 132–134;

creditors’ reactions to, 145;

economy in, 105–158;

effects of, 115–117, 123, 224;

employment during, 224;

end of, 151, 161, 171–173;

forced saving and, 118–119;

and general price level, 119–121;

growth financed by, 123–124;

hoarding and, 106–107;

investment and, 104;

loan, 220–221;

money (see Money inflation); money turnover during, 134–136;

neutral, 105;

official and unofficial, 135;

original, 122, 129;

preconditions of, 105–106;

price, 94, 222–223;

private, 151;

production during, 115, 224;

prosperity in, 217–228;

results of, 152–154;

runaway, 131, 145;

savings and, 133, 138–139;

second, 129;

share prices in, 155;

short-term, 64;

slow, 85;

wages and. 146–147, 149–150;

war and, 130–131, 151, 219, 222, 226

Interest, 33, 43, 45, 48, 55, 60, 107, 152

Interest rate, and bank rate, 108, 133;

and bond and share prices, 188–190;

and business cycles, 168–169, 172–175, 236;

capital supply and, 38–40, 83, 85;

consumption and, 84–85;

demand for capital and, 87–88, 91;

during crises, 111;

during depression, 108–109, 137, 187;

dividends and, 62–63;

fixed capital and, 49;

hoarding and, 107;

labor supply and, 78;

for land, 45–46, 48;

low, 110, 134, 185–186;

productivity of capital and, 80–81;

rents and, 61;

rise of, vi, 121, 126, 134, 141, 227;

savings and, 84–85, 101–102, 161;

and share prices, 156–157;

unnatural, theory of, 162–163

Inventions, new, capital and, 121

Inventories, accumulated during depression, 120;

carry-over credits for, 137, 173;

at end of boom, 172;

swollen, 151;

unliquidated, 178;

during waiting and hurrying, 136

Investable funds, 38

Investment gap, cause of, 112

Investment management, x–xi

Investment services, 215

Investments, and business cycles, 165–166;

for capital appreciation, 208;

changes in, 92–93, 96–97;

consumption and, 93–94, 139–144;

during depression, 111;

interest rate and, 100–102;

liquidity factor in, 63;

long-term, 62–63, 227;

over-, 161–162;

risk in, 204–206;

savings and, 117–118;

short-term, 63, 208;

successful, 214–216

K

Keynes, Lord, viii–ix, xii, 26, 65–66, 85, 87, 91, 94, 106, 109, 112, 115, 144, 149, 170, 185, 206–208

Keynesian psychological law, 138

Keynesian theory of economics, viii–ix, xii, 65–66, 110, 146–147, 160, 178, 217, 235

L

Labor, agricultural, 44, 47–48;

compensating reactions of, 145–146;

demand for, 67, 68, 76, 78, 83, 89;

demand curve for, 75–77, 79–80;

division of, 13–16, 22–23;

goods and, 1;

machine, 29–31, 33;

production and, 5–13, 36–39, 41, 55, 67;

productivity of, 5, 41, 76–82, 84, 89;

supply curve of, 2–4, 37, 69–71, 73–74, 94;

and taxation, 91

Labor contracts, escalator clauses in, 146

Labor market, 69, 72–73

Labor supply, 68–69, 89, 121–122;

changes in, 69–72, 75–77, 88;

elasticity of, 67, 177–178;

production and, 125;

restriction of, 96–97;

scarcer and costlier, reasons for, 72–73

Labor unions, 68, 73–74, 81, 97, 146

Land, 41–50, 61

Leisure, 2, 7, 72

Liquidity as factor in investment, 63, 167

Liquidity preference theory, 106, 166–167

Loan inflation, 220–221

Loans, 26–28, 38;

contracts for, 154;

on land, 45–46, 55;

rates for, fluctuations in, 173

Losses, anticipation of future and, 99;

during business cycles, 179;

deflation, 155;

demand and, 58;

national, 59-60;

output and, 53, 60

M

Machines, 29–31, 33, 42–43, 45, 61

Mass opinion, investment and, 212–213

Mead and Grodzinsky, 199

Minimum wage laws, 73–75

Minors, employment of, 73–74

Monetary policy, anti-inflationary, 181–182, 219;

and business cycles, 184–185, 187;

Republican, 232–236;

restrictive, 109, 227–228

Monetary system, ix, 108

Money, xii, 22–25;

bank, 114–115, 134;

cheap, 110;

circulation of, 23, 93, 94, 105, 119, 175;

and consumption exchange, 54–55;

easy, 163, 184–185;

elasticity of, 65, 94, 141;

entrepreneurs and, 23–25, 28, 31, 38–39;

and exchange, 22–23;

flow of, illustrated, 32;

“free”, 161;

functions of, 22, 24;

hoarding of, 106–107, 135–136, 174–175, 186;

idle, 157;

as indicator of profits, 24–25;

during inflation, 131–132, 134–136, 145–146, 152–153, 163;

lack of confidence in, 174; lending of (see Loans);

need for, 124–126;

paper, 114–115;

and prices, 37;

purchasing power of, stability of, 131;

quantity theory of, 54, 146;

scarcity of, 28;

and utility, 34, 36;

value of, changes in, 105

Money inflation, 94, 105, 108, 130, 147, 159, 223–224

Money markets, 173, 174, 186–189

Money substitutes, 106, 113–115

Monopolies, 154

Monopoly profits, 102

Moody’s Investment Service, 193

Morgenthau, Henry, 185

Multiplier theory, 139–144, 167–168

N

Nature, economics of, 1–13, 18–20

New Deal, 97, 143, 229–231

New York Stock Exchange, x, 157, 183, 191, 193

O

Oil fields, 42

Optimism, business cycles and, 163–165, 173, 227, 237

Output, changes in, and unit cost, 52–53;

illustration of, 20–21;

increased, 16–17, 80;

input and, 56–57;

losses and, 53, 60;

productivity of labor and, 80, 82

Over-investment, 161–162

Over-investment theories, 161–162

Over-speculation, 164

Overtime pay, 71

Ownership, 26

P

Pessimism, 163–165, 169–170, 200, 211, 226

Pigou, A. C, 164

Plant, 40, 43, 102, 161

Political unrest, capital demand and, 89

Population growth, economic effects of, 123–125, 183–184

Price ceilings, 157

Price-cost relationship, 142–143, 145–150, 171, 180

Price formation, x

Price inflation, 94, 222–223

Price level, in business cycles, 171;

influences on, 105–106, 119–120, 125–128, 130;

productivity and, vi, 95–96;

for products of current period, 122–123

Price support, 105, 150, 154

Prices, agricultural, v;

average, v;

business cycles and, 165–166, 172, 176–178;

commodity, 176;

in deflation, 130, 150;

in inflation, 115, 123, 146, 151–153;

labor and, 1–5, 94;

of land, 43–50;

marginal costs and, 52–53;

money and, 94;

and price level, 54;

production costs and, 66, 99;

security, 61–63;

spending and, 86;

stabilization of, 126;

wages and, 232

Probability judgments in business, 204

Producer, isolated, 1–10, 13, 18

Production, agricultural, 41–43, 177;

capital and, 27–34;

by capital and labor, 38–39, 125;

capitalistic or roundabout, 29–33, 55–56, 87;

changes in, 67, 82–83;

and consumption, 5–13, 28, 34–36, 56;

current, products of, 120–123;

in deflation, 130;

expansion of, 5, 27–34;

factors of, 64, 82, 91, 98, 99, 144;

future, 98–99, 120–122;

industrial. 233–234;

inflation and, 115, 224;

by labor alone, 36–38;

and living standard, 15;

machine, 29–31;

over-, 5–6;

past, price level of, 120–121, 130;

proceeds of, distribution of, 41;

purchasing power and, 119;

time element in, 25-30, 33;

volume of, capital and, 29;

wages and, 36–38

Production costs, during business cycles, 179;

differences in, 11–13, 20;

interest and, 48;

prices and, 66, 99;

profits and, 81;

total, 51

Production detours, 31, 33, 38–39, 48, 80, 101, 139

Production exchange, 34–54, 56

Productivity, of capital, 41, 55, 78, 80–82, 169;

cost saving and, 59;

entrepreneur and, 21–22, 24, 57-60, 77–78, 129–130;

of individual worker, 33;

without inflation, vi;

inflationary credit expansion and, 127–128;

of labor, 5, 41, 76–81, 84;

of land, 48;

price level and, 95–96, 127–128;

and profits, 128;

specialization and, 15;

wages and, 4–5, 95–96

Products, 7–8

Profits, 6–7;

during business cycles, 179;

definitions of, 6, 16, 21, 59;

deflation, 155;

demand and, 58;

disappearance of, 100;

entrepreneur and, 21–22, 57-60;

exchange and, 16–17;

frozen, 58, 60;

and future changes, 99;

inflation, 105, 129, 153–154;

inventory, 176;

labor supply and, 77–78;

from lagging production costs, 155;

money as indicator of, 24;

monopoly, 102, 154;

output and, 53–54, 128;

reasons for, 58–59;

and wages, 89;

windfall, 129, 153, 155–156

Prosperity, 65, 111, 175, 187;

depression and, 134, 160, 170–173, 176, 182–183, 218–219;

individual, 25;

in inflation, 217–228;

lasting, economic growth and, 183–184;

savings during, 86;

share prices in, 187–191;

“volume,” 128, 178

Psychological business cycle theories, 163–165, 171

Purchasing power, 119, 122, 151–154

Purchasing power theory, 147–150

Q

Quantity theory of money, 146

R

Rationing, 157

Recovery, 146, 170–171, 188

Reflation, 170

Rent, 42–44, 46–47, 55, 60, 61, 156

Republican party, vi, 232–236

Revenue, equality of costs and, 56–57

Risk, 58, 62–63, 91, 175, 204–206

S

Savings, ix, 6, 28, 31, 38–39, 99;

by banks, 118–119;

capital supply and, 83–84;

cost, 59;

credits and, 78;

during crises and depressions, 111–112, 169;

deflation and, 138;

income and, 85–86, 91–92;

inflation and, 133, 138–139;

and interest rates, 84–85, 101–102, 161;

and investment, 92–93, 117–118;

over-, 134, 161, 170;

prosperity and, 86;

quasi-, 132–134, 138, 156;

reasons for, 84–87;

under-, 170

Say, Jean-Baptiste, 6, 64

Say’s law, 6, 64–66, 109, 160

Securities, 62–63, 100–102, 186, 210–212; (see also Bonds; Shares)

Sellers, deflation and, 136

Sequence analysis, 25–26, 115–116, 142

Shareholders, old, and corporation taxes, 103

Shares, 62;

accumulation and distribution of, 211–212;

common, x, 63, 100–104, 155–158, 186–191, 190–203, 206–207;

preferred, 62, 100–101

Speculation, 166, 172, 182–183, 199, 203, 207–209

Spending, 86, 130, 134, 136, 139, 143, 151–152, 180–182

Spiethoff, 161

Stagnation theory, 85, 87, 112–113, 124

Standards of living, 3–4;

community income and, 86;

low, work-hours and, 5;

money and, 23;

production and, 15;

savings rate and, 138

Stock markets, x, 100;

and the economy, 207–209;

expectations for, interpersonal differences of, 199–200, 202–203, 206–207, 209–210;

forecasting future of, 198–199, 203–204, 214–216;

hurrying and, 157–158;

during inflation, 156;

and mass opinion, 212–213;

offer and demand prices on, 205–206;

price formation on, 192–216;

secondary movements of, 164;

success on, 212;

typical movement of, 200–202

Strikes, 73, 89, 138, 173

Supply, credit (see Credit supply);

current, labor and, 121–122;

and demand, 3–4, 8–13, 98, 119, 121

Supply curves, 8–9, 40;

of capital, 117;

credit, 132–133, 145;

for goods, 117;

labor, 2–4, 37, 69–71, 73–74, 94

Surpluses, 6, 16, 93, 110–111

T

Taste, 58–59, 66

Taxes, 89–91

Total product of economy, 67, 69, 77–78, 82, 83

U

Under-consumption theories, 160–161

Under-employment, 93–94, 170

Unemployment, vi, 93, 229, 233–236;

during booms, 96–97;

during deflation, 147–150;

labor supply and, 70–71;

laws’ effect on, 73–74;

low interest rates and, 110;

and price level, 123;

structural, 67;

union action and, 74–75;

voluntary, 71, 97;

wages and, 67–68

Unit costs, 51–54, 178–179

United States, 148;

bank deposits in, 115;

budget surpluses in, 110–111;

cheap money policy of, 110;

credit policies of, Republican, 232–236;

depressions in, 113, 147–148, 163, 180–181;

economy of, v–vii, 111, 208, 227, 229–237;

inflations in, 131, 180–181, 186;

labor contracts in, 146;

monetary policy of, 110, 182n., 185, 232–236;

unemployment in, 96–97, 177, 229, 233–236

Unnatural interest rate theory, 162–163

Upswing, 169–170, 226

Utility, 34, 36, 41, 42

Utility judgments, 10–11

W

Wages demands, 68, 96

Wage fund theory, 28

Wage level, labor supply and, 68

Wage scales, sliding, 146

Wages, 3–4, 55;

changes in, 37;

competition and, 21, 81;

credit expansion and, 125–126;

decrease in, 147, 149–150;

and employment, 28, 36–37, 47–48, 96–97;

excessive, unemployment and, 67;

fixed, 68, 125;

increases in, 146–147;

labor demand curve and, 76–77;

and labor supply, 70–71;

money, 127–128, 147, 177;

prices and, 232;

productivity and, 79–83, 95–96;

profits and, 89, 91–92;

real, 127, 146, 177;

in relation to leisure, 72;

stabilization of, 126;

stagnation theory and, 113;

uniform, 21, 81

Waiting, 130–134;

business cycles and, 164–165, 169–170;

and credit demand in deflation, 136–138;

and idle money boom, 157;

inventories during, 136;

spending and, 139;

and velocity of money turnover, 135

War, business cycles and, 170, 173, 176–177, 180–181, 219;

government bonds during, 156;

and inflationary credits, 151;

price level during, 130–131

Wealth of nations, 65

Weber, Adolf, 113

Wicksell, K., 109, 162–164

Women’s labor, 72

Work day, length of, 2, 72

Workers, capital and, 27–28;

and leisure, 2–3;

marginal, 76–77;

new, 72, 75–76;

single, 1–10, 13, 18, 33, 75, 79–80

Work-hours, 1, 77–72;

exchange of goods and, 15–16, 36–37;

labor supply and, 70–72;

marginal, 4–5;

and multitude of products, 7–11;

and price, 3–5