Abstract
As soon as the increased real value of assets raises the consumption function sufficiently to start employment and output up again, prices and wages will cease falling, and the real value of assets will cease rising.... Thus the deflation of prices (which a la Pigou is supposed to continue to cause an ever increasing real value of liquid assets until full employment is reached) stops at the lower turning point. The force that is supposed to drive the economy into full employment already peters out once the lower turning point is reached.2
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