Banking policy and the price level

…As shown by Pigou's three propositions on production, distribution, and stability for increasing economic welfare, this book as a whole reflected the practical character of the Cambridge School, which sought fruits rather than light. The third of these propositions was later developed into Industrial Fluctuations (1927), but his successor DH Robertson's theory of economic fluctuations had been developed earlier through his studies of Industrial Fluctuations (1915) and Banking Policy and the Price Level (1926). The British economy was plagued by a large number of unemployed people and idle facilities during the recession following the Great Depression in 1929, and JM Keynes's The General Theory of Employment, Interest, and Money (1936) was published, criticizing the traditional economics that dealt with resource allocation under full employment based on Say's Law, which states that "supply creates demand," and triggering the so-called Keynesian Revolution. …

*Some of the terminology used in "Banking Policy and Price Levels" is listed below.

Source | Heibonsha World Encyclopedia 2nd Edition | Information

…ピグーが経済的厚生増大のための生産，分配，安定に関する三つの命題を掲げたことに示されるように，本書は全体として〈光より果実を求める〉ケンブリッジ学派の実践的性格を反映したものであった。このうち第三命題は後に《産業変動論》(1927)へと発展させられたが，景気変動論はむしろ，彼の後継者D.H.ロバートソンの《産業変動の研究》(1915)，《銀行政策と価格水準》(1926)などを通じて早くから展開されていた。　イギリス経済は，その後29年の大恐慌後の不況期に多量の失業者と遊休設備に悩まされるようになったが，そのなかでJ.M.ケインズの《雇用･利子および貨幣の一般理論》(1936)が出版され，〈供給は需要をつくりだす〉という〈セーの法則〉に立って完全雇用のもとでの資源配分を取り扱ってきた従来の経済学に批判を加え，いわゆる〈ケインズ革命〉をひき起こすことになった。…

※「《銀行政策と価格水準》」について言及している用語解説の一部を掲載しています。

出典｜株式会社平凡社世界大百科事典 第２版について | 情報