Keynesian controversies on wages

Abstract

In The General Theory, Keynes advanced two hypotheses about movements in wages and urged their empirical investigation. John Dunlop, Lorie Tarshis and Henry Richardson responded to this call with articles published in the Economic Journal in the late 1930s. In turn, Keynes replied to their findings. This exchange is described and the subsequent literature on the cyclical movement of real wages and the rigidity of money wages is outlined.