Macroeconomics for Beginners | Optional Lecture

The ���general glut���: What people used to talk about, instead of recession and depressions. It focuses on what is going on: excess supply in pretty much all of the markets. Back Up to 1803: Jean-Baptiste Say argued back then that a ���general glut��� was a metaphysical impossibility: ���If certain goods remain unsold, it is because other goods are not produced; and that it is production alone which opens markets to produce.... Whenever there is a glut, a superabundance, [an excess supply] of several sorts of merchandize, it is because other articles [in excess demand] are not produced in sufficient quantities...��� By 1830 Say had changed his mind...

https://github.com/braddelong/public-files/blob/master/econ-115-module-5-lecture-3.O.1-optional-macro-for-beginners-%23tceh.pptx

 

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