Transportation Costs Icon
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Relative stability of a price level will be result of such policy,
On all occasions the big stability, than at the politician of the flexible wage
Payments. If to lay aside administered or monopoly prices, in
Short-term aspect the price level will be changed only in that measure, in what
Changes of volume of employment will affect primary costs
Productions. In long-term aspect of the price begin to be changed in the answer only
On such changes in production costs which will occur at
Introduction of new technology, application of the new equipment or increase
However, if significant fluctuations of employment take place nevertheless,
That they will be accompanied also by essential fluctuations in a price level. However, as
I already have told above, these fluctuations will be less, than at realisation of a policy
Thus, at realisation of a policy of rigid wages
The firmness of prices in short-term aspect will be connected with absence
Fluctuations in employment. In long-term aspect all of us still face
Choice between a policy supposing in process of perfection technicians and
Technologies slow fall in prices at preservation of stable level
Wages, and a policy supposing slow increase by the wage
Payments at preservation of a firmness of prices. As a whole I prefer the second
To variant whereas to support actual employment in limits,
There is enough relatives to a full employment, it is easier, when in the future growth is expected
Wages, than in that case when in the future its decrease is expected. To
To it social advantages gradually decreasing join still
Debt burden, the big ease of moving of a labour from branches,
Falling into decay, in fast developing branches and, at last,
Psychological stimulus which, possibly, will arise at availability
Tendencies to moderate growth of monetary wages. But it is a question not
Basic, and I would be beyond a subject of the present research, if
Would attend to detailed analysis of arguments in favour of this or that of these
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