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Asymmetry, of course, would disappear. But in this case employment falling, as

Only it ceases to be complete, would proceed is unceasing until then,

While or the norm of percent would be already incapable to decrease further, or

The wages would not reach zero. Actually it is necessary any The factor, which cost expressed in money, would be if not It is fixed, then it is inactive to provide the known Stability of cost estimations in the conditions of monetary economy.

Representation about that any increase in quantity of money is

Inflationary (if we do not understand as the term inflation only that the price

Grow), it is linked to a basic assumption of the classical theory, it agree To which we always are in conditions, in which abbreviation of the real

Rewards of factors of production carries on to abbreviation of their sentence.


Using the denotations entered in it. 20, we can at desire To express essence of the aforesaid in the form of characters.

Let's write MV=D where the M is quantity of money, V-speed of call of money on

To the ratio to incomes (this definition differs from standard in some The minor ratios marked above) and D - effective demand. If V Permanently, the prices will vary in the same proportion, as quantity Money provided that it is equal to unit.

This condition is satisfied (see above), if eit=O or if ew=1.

The condition ew=1 means that unit of wages expressed in Money, effective demand, as grows in the same proportion, as, and The condition e0=O means that the volume of output does not react more on Further increase in effective demand, as

Anyhow the volume of output remains invariable.

Further, we will consider a case, when speed of call of money under the ratio

To incomes is not a constant, having entered one more metric of elasticity, and

Elasticity of effective demand in reply to quantity change Money:

From here we can output

Where ep=1-ee.e0 (1-e0); so

E=ED - (1-e) ed.ee.e0=ed (1-ee.e0+ee.e0.ew)

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