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111-463: Born in Oviedo in 1883, his father died when he was six years old. His mother moved him to Bilbao in 1891. From a young age, he survived by selling magazines in the street. He eventually obtained work as a stenographer at the daily newspaper La Voz de Vizcaya , which led to a position as a copy editor and later a journalist at the rival daily El Liberal . He eventually became the director and owner of

222-400: A cul-de-sac (Hansen's term was "leakage"); the only culs-de-sac he acknowledged were imports and hoarding, although he also said that a rise in prices might dilute the multiplier effect. Jens Warming recognised that personal saving had to be considered, treating it as a "leakage" (p. 214) while recognising on p. 217 that it might in fact be invested. The textbook multiplier gives

333-500: A "great army of Muslims" and attempted to take Zamora. To add to this, Alfonso III's brother Vermudo revolted in Astorga. There were several attempts at the aging Alfonso III's life by his sons. Alfonso III was overthrown by sons, and died in Zamora. His body was taken to Oviedo for burial. The moving of the royal court to León , after the death of Alfonso III , 'The Great', links the life of

444-501: A 1928 Treasury memorandum ("with imports as the only leakage"), but the idea was discarded in his own subsequent writings. Soon afterwards the Australian economist Lyndhurst Giblin published a multiplier analysis in a 1930 lecture (again with imports as the only leakage). The idea itself was much older. Some Dutch mercantilists had believed in an infinite multiplier for military expenditure (assuming no import "leakage"), since ... ...

555-555: A capital city and ruling seat as a result of the moving of the court from Pravia and the creation of the Pilgrim's Route to Santiago de Compostela , a major event in the history of Oviedo, a church dedicated to The Saviour , the Cathedral of San Salvador , and a royal palace formed the nucleus of Oviedo. Also constructed during Alfonso II's reign was the San Julian de los Prados church, which

666-540: A clerical stronghold". Oviedo Oviedo ( Spanish: [oˈβjeðo] ) or Uviéu ( Asturian : [uˈβjew] ) is the capital city of the Principality of Asturias in northern Spain and the administrative and commercial centre of the region. It is also the name of the municipality that contains the city. Oviedo is located approximately 24 km (15 mi) southwest of Gijón and 23 km (14 mi) southeast of Avilés , both of which lie on

777-412: A culprit as Kahn and Samuelson, wrote that ... ... in connection with the multiplier (and indeed most of the time) what Keynes is referring to as "investment" really means any addition to spending for any purpose ... The word "investment" is being used in a Pickwickian, or Keynesian, sense. Kahn envisaged money as being passed from hand to hand, creating employment at each step, until it came to rest in

888-523: A deep sense of patriotism (he claimed to "carry Spain within his heart" and "in the marrow of his bones") was celebrated by the republican press, and it was received well even by José Antonio, then in prison. However, it was met with hostility among the radicals, deepening the rupture within the party. On 31 May 1936, Prieto was shot at a socialist rally in Ecija . After the beginning of the Civil War, when news of

999-475: A demand to hoard, is not admitted by the simplified liquidity preference model of the General Theory . Once he rejects the classical theory that unemployment is due to excessive wages, Keynes proposes an alternative based on the relationship between saving and investment. In his view, unemployment arises whenever entrepreneurs' incentive to invest fails to keep pace with society's propensity to save ( propensity

1110-553: A dynasty that reigned until 1037. The Asturian Kingdom was on hostile terms with southern Moorish Spain. In 794, Oviedo was sacked and pillaged by Caliph Hisham I in one of his numerous campaigns against the Christian kingdoms. King Alfonso I is said to have "set in place the whole order of the Goths, as it had been in Toledo , as much in the church as in the palace." The intention with Oviedo

1221-447: A free market policy would. Under the classical theory, the wage rate is determined by the marginal productivity of labour , and as many people are employed as are willing to work at that rate. Unemployment may arise through friction or may be "voluntary", in the sense that it arises from a refusal to accept employment owing to "legislation or social practices ... or mere human obstinacy", but "...the classical postulates do not admit of

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1332-412: A marginal propensity to consume of 2/3, they will now spend $ 666.67 on new consumption goods. The producers of these goods will now have extra incomes... they in turn will spend $ 444.44 ... Thus an endless chain of secondary consumption respending is set in motion by my primary investment of $ 1000. Samuelson's treatment closely follows Joan Robinson 's account of 1937 and is the main channel by which

1443-450: A newly created Committee of Economists, Keynes tried to use Kahn's emerging multiplier theory to argue for public works, "but Pigou's and Henderson's objections ensured that there was no sign of this in the final product". In 1933 he gave wider publicity to his support for Kahn's multiplier in a series of articles titled "The road to prosperity" in The Times newspaper. A. C. Pigou was at

1554-504: A political pamphlet seeking to "provide academically respectable economic arguments" for Lloyd George's policies. It was titled Can Lloyd George do it? and endorsed the claim that "greater trade activity would make for greater trade activity ... with a cumulative effect". This became the mechanism of the "ratio" published by Richard Kahn in his 1931 paper "The relation of home investment to unemployment", described by Alvin Hansen as "one of

1665-679: A revolutionary general strike . The government's fear of unrest like that of the February Revolution that year in Russia (the October Revolution there was still to come) caused it used the military to put down the general strike. Members of the strike committee were arrested in Madrid . Having been involved in organizing the strike, Prieto fled to France before he could be arrested. He did not return until April 1918, when he had been elected to

1776-404: A serious academic scholar, rather than just as the author of stinging polemics", and marks a large step in the direction of his later views. In it, he attributes unemployment to wage stickiness and treats saving and investment as governed by independent decisions: the former varying positively with the interest rate, the latter negatively. The velocity of circulation is expressed as a function of

1887-428: A somewhat lesser extent. Keynes adds that "this psychological law was of the utmost importance in the development of my own thought". Keynes viewed the money supply as one of the main determinants of the state of the real economy. The significance he attributed to it is one of the innovative features of his work, and was influential on the politically hostile monetarist school . Money supply comes into play through

1998-583: A un escultor: pequeños detalles de grandes sucesos ( Letters to a Sculptor: Small Details of Great events , 1962). Supporting of the notion of further devolution to the Basque Provinces and Navarra , Prieto was greatly opposed to separatism as well as towards the plans of the Basque nationalists in the draft of the Estella Statute, fearing the prospect of the territory becoming a "reactionary Gibraltar and

2109-512: A unified mathematical basis for this approach, which the Lausanne School generalized to general equilibrium theory. For macroeconomics, relevant partial theories included the Quantity theory of money determining the price level and the classical theory of the interest rate . In regards to employment, the condition referred to by Keynes as the "first postulate of classical economics" stated that

2220-520: A war could support itself for an unlimited period if only money remained in the country ... For if money itself is "consumed", this simply means that it passes into someone else's possession, and this process may continue indefinitely. Multiplier doctrines had subsequently been expressed in more theoretical terms by the Dane Julius Wulff (1896), the Australian Alfred de Lissa (late 1890s),

2331-413: A whole". At the time that Keynes wrote the General Theory , it had been a tenet of mainstream economic thought that the economy would automatically revert to a state of general equilibrium: it had been assumed that, because the needs of consumers are always greater than the capacity of the producers to satisfy those needs, everything that is produced would eventually be consumed once the appropriate price

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2442-653: A wide range of long- and middle-distance services, in addition to regional and suburban ( cercanías ) services operated by Renfe , and the narrow-gauge Renfe Feve lines. Within the municipality, there are others rail stations on the Cercanías Asturias network, in La Corredoria, Llamaquique, El Caleyo, Olloniego, Santa Eulalia de Manzaneda, Tudela-Veguín, Parque Principado, Colloto, Argañosa-Lavapiés, Las Campas, Las Mazas, San Claudio, Soto-Udrión, Trubia, Fuso de la Reina, and Caces. The Oviedo-Villapérez mining railway

2553-627: A wide range of the classical repertoire with world class soloists and conductors. It is based in the Auditorio Principe Felipe in Oviedo, but it also performs regularly at the main concert venues in Gijón and Avilés. It is Internationally recognized as one of the best orchestras in Spain, it is also committed to adventurous programing with strong emphasis on education and community partnerships. Rossen Milanov

2664-510: Is Alfredo Canteli ( PP ). The most famous athlete from Oviedo is 2005 and 2006 Formula One world champion Fernando Alonso , famous for being Spain's only Formula One title winner, having raced for Minardi , Renault , Ferrari , McLaren , Alpine , and Aston Martin . Alonso has his official career and life museum, together with a karting circuit designed by himself, in Llanera, nearby Oviedo. The Festive Calendar: Typical gastronomy of

2775-505: Is classical but incorporates ideas that later played a part in the General Theory . In particular, looking at the hyperinflation in European economies, he drew attention to the opportunity cost of holding money (identified with inflation rather than interest) and its influence on the velocity of circulation . In 1930, he published A Treatise on Money , intended as a comprehensive treatment of its subject "which would confirm his stature as

2886-446: Is likely somewhat milder year-round since both are located in an upwards gradient away from the sea. Its maritime position renders winters much milder than in continental Spain such as in the Madrid capital region, but summers naturally are far less hot than in the interior. There is a slight drying tendency during summer, albeit less than in other areas of Spain. Oviedo is served by Asturias Airport , about 48 km (30 mi) from

2997-518: Is located in the Camara Sancta in the Oviedo Cathedral. However, recent Carbon14 analysis of the wooden cross indicates that it was no older than the golden casing created to surround the cross. The commission of the casing shows us Alfonso III's interest in perpetuating the legend of Pelagius I. Towards the end of Alfonso III's reign, he faced many challenges. In 901, a prophet named Alhaman led

3108-465: Is located in the centre of Asturias between the Nalón River and Nora River . To the north lie Las Regueras and Llanera , to the south Mieres del Camino and Ribera de Arriba , to the east Siero and Langreo , and to the west Grado and Santo Adriano . The altitude of Oviedo is between 80 and 709 metres above sea level. The city is protected against strong winds by Monte Naranco in the north and

3219-502: Is more important in the adjacent municipalities of Siero and Llanera which lie to the north of the city, between Oviedo and Gijon . In 2009, the municipality had a total debt of €135 million. Oviedo contains a very rich architectural history, with many buildings dating back to the early medieval period. Many of the building projects were undertaken during Alfonso II 's (791-842) reign and Ramiro I 's (842-850) reign. Alfonso III 's contributions are not as well documented. Alfonso II

3330-405: Is one of Keynes's synonyms for "demand"). The levels of saving and investment are necessarily equal, and income is therefore held down to a level where the desire to save is no greater than the incentive to invest. The incentive to invest arises from the interplay between the physical circumstances of production and psychological anticipations of future profitability; but once these things are given

3441-576: Is one of the best preserved Asturian churches. Alfonso II's successor, Ramiro I (842–850), continued Alfonso II's construction streak. Ramiro I constructed two buildings, the Church Santa Maria del Naranco and San Miguel de Lillo . The Church Santa Maria de Naranco was likely to originally be Ramiro I's palace and later changed into a church. By this time the Court of the Palace was centered in Oviedo, which

Indalecio Prieto - Misplaced Pages Continue

3552-472: Is recorded as expressing his pessimism with these words: "with this brutality we have lost the war". However, historian Julius Ruiz argues that Prieto was not necessarily a steadfast moderate, as he held that Republican victory would require stripping the Church, capitalists and army of their power as they were deemed collectively responsible for the rebellion. In August 1936, Prieto also stated that Republican terror

3663-413: Is said that two monks, Máximo and Fromestano ( Latin : Maximus et Fromestanus ), founded the city in 761. That settlement was soon to be completed with the construction of a small church dedicated to Saint Vincent . Oviedo was established on an uninhabited hillside, with no Visigothic or Roman foundation before it became an Asturian city. Following Pelagius, who died in 737, Alfonso I (739–57) founded

3774-623: Is said to have built four churches, one dedicated to Christ the Saviour, the Blessed Virgin Mary, St. Tyrsus, and SS Julian and Basilissa. There are few traces of the churches dedicated to the Saviour, the Virgin Mary, and St. Tyrsus. The San Salvador church , which was dedicated to the Saviour, is likely beneath the Cathedral of Oviedo. The church of Santa Maria de la Corte , which was dedicated to

3885-504: Is the Music Director. Oviedo also hosts the annual Princess of Asturias Awards (previously called the Prince of Asturias Awards ). This prestigious event, held in the city's Campoamor Theatre, recognizes international achievement in eight different categories. Previous award winners include Oscar Niemeyer , Bob Dylan and Francis Ford Coppola in the category of Arts ; Nelson Mandela ,

3996-567: Is the orthodox Treasury dogma, steadfastly held ... [that] very little additional employment and no permanent additional employment can, in fact, be created by State borrowing and State expenditure. Keynes pounced on a flaw in the Treasury view . Cross-examining Sir Richard Hopkins , a Second Secretary in the Treasury, before the Macmillan Committee on Finance and Industry in 1930 he referred to

4107-404: Is volatile and unstable and that, consequently, a market economy often experiences inefficient macroeconomic outcomes, including recessions when demand is too low and inflation when demand is too high. Further, they argue that these economic fluctuations can be mitigated by economic policy responses coordinated between government and central bank . In particular, fiscal policy actions taken by

4218-487: The liquidity preference function, which is the demand function that corresponds to money supply. It specifies the amount of money people will seek to hold according to the state of the economy. In Keynes's first (and simplest) account – that of Chapter 13 – liquidity preference is determined solely by the interest rates r —which is seen as the earnings forgone by holding wealth in liquid form: hence liquidity preference can be written L ( r ) and in equilibrium must equal

4329-610: The General Theory, in Chapter 22, Section IV and Chapter 23, Section VII . Numerous concepts were developed earlier and independently of Keynes by the Stockholm school during the 1930s; these accomplishments were described in a 1937 article, published in response to the 1936 General Theory, sharing the Swedish discoveries. In 1923, Keynes published his first contribution to economic theory, A Tract on Monetary Reform , whose point of view

4440-495: The Great Depression from the ideas presented by Keynes in his 1936 book, The General Theory of Employment, Interest and Money . Keynes' approach was a stark contrast to the aggregate supply -focused classical economics that preceded his book. Interpreting Keynes's work is a contentious topic, and several schools of economic thought claim his legacy. Keynesian economics, as part of the neoclassical synthesis , served as

4551-480: The International Space Station and Al Gore in the category of International Cooperation; and Mario Bunge , CNN and Quino in the category of Communications and Humanities. Oviedo University 's international campus attracts many foreign scholars from all over the globe. The city lends its name to the sudarium of Oviedo a religious relic revered there since the 9th century. The current mayor

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4662-456: The Sierra del Aramo in the south. The city centre is rather hilly. The economy is strongly dependent on the service sector , with many office buildings in the city centre. Oviedo's status as the administrative centre of the region supports a large number of jobs in public administration. The manufacturing sector , which remains important in this part of Spain, is not prevalent in Oviedo itself, but

4773-730: The Spanish Congress of Deputies . Very critical of the actions of the government and army during the Rif War , or "War of Melilla" (1919–1926), Prieto spoke out strongly in the Congress after the Battle of Annual (1921). He also addressed the likely responsibility of the king in the imprudent military actions of General Manuel Fernández Silvestre in the Melilla command zone. Prieto was opposed to Francisco Largo Caballero 's line of partial collaboration with

4884-413: The quantity theory of money protects the classical school from the conclusion Keynes expected from it. Saving is that part of income not devoted to consumption , and consumption is that part of expenditure not allocated to investment , i.e., to durable goods. Hence saving encompasses hoarding (the accumulation of income as cash) and the purchase of durable goods. The existence of net hoarding, or of

4995-408: The "first proposition" that "schemes of capital development are of no use for reducing unemployment" and asked whether "it would be a misunderstanding of the Treasury view to say that they hold to the first proposition". Hopkins responded that "The first proposition goes much too far. The first proposition would ascribe to us an absolute and rigid dogma, would it not?" Later the same year, speaking in

5106-408: The 1920s and 1930s. Underconsumptionists were, like Keynes after them, concerned with failure of aggregate demand to attain potential output, calling this "underconsumption" (focusing on the demand side), rather than " overproduction " (which would focus on the supply side), and advocating economic interventionism . Keynes specifically discussed underconsumption (which he wrote "under-consumption") in

5217-572: The 1929 General Election on a promise to "reduce levels of unemployment to normal within one year by utilising the stagnant labour force in vast schemes of national development". David Lloyd George launched his campaign in March with a policy document, We can cure unemployment, which tentatively claimed that, "Public works would lead to a second round of spending as the workers spent their wages." Two months later Keynes, then nearing completion of his Treatise on money , and Hubert Henderson collaborated on

5328-600: The Chronicle of Albelda. In 882, the body of the Cordoban martyr Eulogius was sent to Oviedo. This was meant a diplomatic gift from Emir Muhammad I (852–886). Eulogius was executed in 859. The body was likely accompanied by Eulogius's book collection. In the 16th century, the only manuscript of Eulogius's writings was discovered in the Oviedo Cathedral Library. Here it was copied once before it disappeared completely from

5439-594: The German/American Nicholas Johannsen (same period), and the Dane Fr. Johannsen (1925/1927). Kahn himself said that the idea was given to him as a child by his father. As the 1929 election approached "Keynes was becoming a strong public advocate of capital development" as a public measure to alleviate unemployment. Winston Churchill, the Conservative Chancellor, took the opposite view: It

5550-520: The Muslims who at the time were occupying most of the Iberian Peninsula . The Moorish invasion that began in 711 had taken control of most of the peninsula, until the revolt in the northern mountains by Pelagius. The resulting Kingdom of Asturias, located in an economically poor region of Iberia, was largely ignored by the Muslims. In 720, the area where Oviedo is now located was still uninhabited. It

5661-424: The Oviedo cathedral by Asturian and Leonese Kings. Bishop Pelayo's intent behind this was to try to gain the independence of his see from the archbishop of Toledo or Santiago, as well as to promote Oviedo as a pilgrim destination. According to Sánchez-Albornoz, "He (Bishop Pelayo) always, always, always falsified." It is assumed that Bishop Pelayo never committed forgery for the enjoyment, but primarily to promote

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5772-632: The Primo de Rivera dictatorship, as well as the ambitious plan of infrastructural improvements in Madrid, such as the new Chamartín railway station and the tunnel under Madrid linking it to Atocha railway station . Most of those works that would not be completed until after the 1936–1939 Spanish Civil War . Unlike Largo Caballero, he opposed the general strike and the failed armed rising in October 1934, but he again fled to France to escape possible prosecution. Before

5883-454: The Virgin Mary, was demolished in 1702. As for St. Tyrsus, the church dedicated to him exists today as the church of San Tirso . Only a wall and a three light window are believed to have been built by Alfonso II, the majority of the rest of the church is dated to the 14th century. The best preserved church constructed during Alfonso II's time was San Julian de los Prados . Two buildings are said to have been built during Ramiro I's reign, one

5994-471: The backdrop of high and persistent unemployment during the Great Depression, Keynes argued that there was no guarantee that the goods that individuals produce would be met with adequate effective demand, and periods of high unemployment could be expected, especially when the economy was contracting in size. He saw the economy as unable to maintain itself at full employment automatically, and believed that it

6105-411: The beginning of the 17th century, opened Oviedo to a progressive urban expansion. Further impulse was in the 18th century by the regional nobility and the construction of remarkable palaces; in the 19th century by industrial growth and the suburban development of Uría Street; and finally in the 20th century by administrative and commercial development. In October 1934, there was a left-wing revolt against

6216-664: The center of the city; it is located in the municipality of Castrillón. The airport is connected to the city by the A-8 motorway, the A-66 motorway and scheduled bus service ( Alsa ). Oviedo currently has 15 bus lines and one Búho (owl) line. The owl services run on Saturdays, Sundays and on the eve of public holidays, except Christmas Day and Christmas Eve . Last two lines ( Línea U y Línea V ) that connect rural zones of Oviedo were implemented in March 2020 and they only operate between Monday and Friday. The Oviedo railway station provides

6327-526: The church of Oviedo. The following centuries (12th–16th) witness the development of the medieval city, the outlines of which are still preserved today, the construction of the city walls, a devastating fire which took place on Christmas Eve in 1521, and the aqueduct works, Los Pilares , constructed in order to provide the city with water throughout the 16th century. The foundation of the Arts College ( University of Oviedo ) by Fernando de Valdés Salas , at

6438-551: The city to the relics preserved in its cathedral and the passing of pilgrims that visit El Salvador, and continue on their way to Santiago de Compostela. Kings spent less and less time in Oviedo following the change, and spent more time in the rich Duero Plains. León was built up after it became the capital, and eventually surpassed Oviedo in terms of construction. During the 12th century, many Royal Charters were fabricated by Bishop Pelayo de Oviedo , "el fabulador" ("the fabulist"). Since there were few checks on internal bookkeeping in

6549-558: The city, including Ramón Pérez de Ayala in Tigre Juan and Dolores Medio in her novel Nosotros los Rivero . Oviedo was featured prominently in Woody Allen 's movie Vicky Cristina Barcelona . Museums in Oviedo : Other cultural centres in Oviedo : Cultural institutions : Orquesta Sinfonica del Principado de Asturias is the premier orchestra of the region, the Principality of Asturias. This full-time symphony orchestra performs

6660-461: The claim that the effect of public works is at the expense of expenditure elsewhere, admitting that this might arise if the revenue is raised by taxation, but says that other available means have no such consequences. As an example, he suggests that the money may be raised by borrowing from banks, since ... ... it is always within the power of the banking system to advance to the Government the cost of

6771-476: The conservative government, based in several cities. In Asturias, the fighting developed into a small, short-lived civil war: the Asturian miners' strike of 1934 . 50,000 workers, mostly miners, armed themselves with dynamite and captured Oviedo after heavy fighting. They gained control of the arsenal with 30,000 rifles and machine guns. The Army Chief of Staff, General Francisco Franco sent in soldiers who overpowered

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6882-446: The cost of the roads. The demonstration relies on "Mr Meade's relation" (due to James Meade ) asserting that the total amount of money that disappears into culs-de-sac is equal to the original outlay, which in Kahn's words "should bring relief and consolation to those who are worried about the monetary sources" (p. 189). A respending multiplier had been proposed earlier by Hawtrey in

6993-517: The dictatorship of Miguel Primo de Rivera . He had bitter confrontations with both men. In August 1930, despite the opposition of party leader Julián Besteiro Fernández , Prieto participated in the Pact of San Sebastián . The broad coalition of republican parties proposed doing away with the Spanish monarchy. In that matter, Prieto was supported by Largo Caballero's wing of the party, as the latter believed that

7104-402: The economy operates below its potential output and growth rate. Prior to Keynes, a situation in which aggregate demand for goods and services did not meet supply was referred to by classical economists as a general glut , although there was disagreement among them as to whether a general glut was possible. Keynes argued that when a glut occurred, it was the over-reaction of producers and

7215-412: The existence and nature of general gluts . A number of the policies Keynes advocated to address the Great Depression (notably government deficit spending at times of low private investment or consumption), and many of the theoretical ideas he proposed (effective demand, the multiplier, the paradox of thrift ), had been advanced by authors in the 19th and early 20th centuries. (E.g. J. M. Robertson raised

7326-483: The fall of the monarchy was necessary so that socialism could rise to power. When the Second Spanish Republic was proclaimed on April 14, 1931, Prieto was named finance minister in the provisional government, presided by Niceto Alcalá-Zamora . As Minister of Public Works in the 1931–1933 government of Manuel Azaña , he continued and expanded the policy of hydroelectric projects that had been begun during

7437-479: The fight. I ask for brave, hard and steely breasts for the combat,... but with sensitive hearts, capable of shaking when faced with human sorrow and being able to harbour mercy and tender feelings, without which the most essential part of human greatness is lost. However, a couple of weeks after those words, the Modelo Massacre took place in Madrid, much to the dismay of many Popular Front leaders. Saddened, Prieto

7548-467: The government after the March 1938 defeat on the Aragon front after an escalating dispute with the communists. He refrained from active political life for the remainder of the war, exiling himself to Mexico . In 1945, toward the end of World War II , he was one of those who attempted to form a republican government-in-exile and hoped to reach an accord with the monarchist opposition to Francisco Franco ,

7659-403: The government and monetary policy actions taken by the central bank, can help stabilize economic output, inflation, and unemployment over the business cycle . Keynesian economists generally advocate a regulated market economy – predominantly private sector , but with an active role for government intervention during recessions and depressions . Keynesian economics developed during and after

7770-630: The government forces tried to establish control over the Workers' Party of Marxist Unification (POUM) and the anarchist Confederación Nacional del Trabajo (CNT), the government of Largo Caballero was replaced by that of Juan Negrín , with Prieto being Minister of Defense. Lacking support from the democratic powers, such as France , the United Kingdom and the United States , the Spanish Republic

7881-418: The great landmarks of economic analysis". The "ratio" was soon rechristened the "multiplier" at Keynes's suggestion. The multiplier of Kahn's paper is based on a respending mechanism familiar nowadays from textbooks. Samuelson puts it as follows: Let's suppose that I hire unemployed resources to build a $ 1000 woodshed. My carpenters and lumber producers will get an extra $ 1000 of income... If they all have

7992-498: The ideas that became the basis for Keynesian economics in his main work, The General Theory of Employment, Interest and Money (1936). It was written during the Great Depression , when unemployment rose to 25% in the United States and as high as 33% in some countries. It is almost wholly theoretical, enlivened by occasional passages of satire and social commentary. The book had a profound impact on economic thought, and ever since it

8103-452: The impression that making society richer is the easiest thing in the world: the government just needs to spend more. In Kahn's paper, it is harder. For him, the initial expenditure must not be a diversion of funds from other uses, but an increase in the total expenditure: something impossible – if understood in real terms – under the classical theory that the level of expenditure is limited by the economy's income/output. On page 174, Kahn rejects

8214-457: The incentive is independent of income and depends solely on the rate of interest r . Keynes designates its value as a function of r as the "schedule of the marginal efficiency of capital ". The propensity to save behaves quite differently. Saving is simply that part of income not devoted to consumption, and: ... the prevailing psychological law seems to be that when aggregate income increases, consumption expenditure will also increase but to

8325-478: The kingdom actions like this had become commonplace throughout Asturias. When original documents faded, they were copied onto cartularies and often with alterations that suited the needs of those who copied the documents. The most glaring example can be seen in the Liber Testamentorum , which was compiled by Bishop Pelayo de Oviedo in 1109. This document contained many confirmation rights and property rights of

8436-442: The laying off of workers that led to a fall in demand and perpetuated the problem. Keynesians therefore advocate an active stabilization policy to reduce the amplitude of the business cycle, which they rank among the most serious of economic problems. According to the theory, government spending can be used to increase aggregate demand, thus increasing economic activity, reducing unemployment and deflation . The Liberal Party fought

8547-510: The library. Following an offensive in 881 against an Umayyad army, Alfsonso III returned to Oviedo to rebuild churches. It was at this time he constructed one or more palaces. The Chronicle of Albelda and the Chronicle of Sampiro tie Alfonso III's victories in battle to his program of church building in Oviedo. In 908, Alfonso III commissioned a gold and jewelled cross to contain the cross carried by Pelagius I at Covadonga. This "Cross of Victory"

8658-458: The mountains surrounding Oviedo, presumably away from the violence. During the 9th century in Oviedo, Roman style property law is common. 9th century documents also indicate small scale aristocracies across the kingdom, as well as a large presence of a landowning peasantry. Following Ramiro I's reign, Ordoño I (850–866) came into power and began the Asturian king's father-son succession. Ordoño I

8769-437: The multiplier has influenced Keynesian theory. It differs significantly from Kahn's paper and even more from Keynes's book. The designation of the initial spending as "investment" and the employment-creating respending as "consumption" echoes Kahn faithfully, though he gives no reason why initial consumption or subsequent investment respending should not have exactly the same effects. Henry Hazlitt , who considered Keynes as much

8880-578: The newspaper. In 1899, at the age of 16, he had joined the PSOE. As a journalist in the first decade of the 20th century, Prieto became a leading figure of socialism in the Basque Country . Spain's neutrality in World War I greatly benefited Spanish industry and commerce, but those benefits were not reflected in the workers' salaries. The period was one of great social unrest, culminating on August 13, 1917, in

8991-468: The overall price level, the interest rate , the level of employment, and income (or equivalently output) measured in real terms . The classical tradition of partial equilibrium theory had been to split the economy into separate markets, each of whose equilibrium conditions could be stated as a single equation determining a single variable. The theoretical apparatus of supply and demand curves developed by Fleeming Jenkin and Alfred Marshall provided

9102-550: The paradox of thrift in 1892 . ) Keynes's unique contribution was to provide a general theory of these, which proved acceptable to the economic establishment. An intellectual precursor of Keynesian economics was underconsumption theories associated with John Law , Thomas Malthus , the Birmingham School of Thomas Attwood , and the American economists William Trufant Foster and Waddill Catchings , who were influential in

9213-408: The possibility of the third category," which Keynes defines as involuntary unemployment . Keynes raises two objections to the classical theory's assumption that "wage bargains ... determine the real wage". The first lies in the fact that "labour stipulates (within limits) for a money-wage rather than a real wage". The second is that classical theory assumes that, "The real wages of labour depend on

9324-518: The province: Oviedo's climate is oceanic (Cfb in the Köppen climate classification ). Its climate is very similar to neighbouring city Gijón, with only slightly wider fluctuations in temperature due to its higher altitude and more inland location. Oviedo's warmest month is in August with an average high of 23.7 °C (74.7 °F). The city centre is located at a lower elevation than the weather station so

9435-487: The rate of interest. He interpreted his treatment of liquidity as implying a purely monetary theory of interest. Keynes's younger colleagues of the Cambridge Circus and Ralph Hawtrey believed that his arguments implicitly assumed full employment , and this influenced the direction of his subsequent work. During 1933, he wrote essays on various economic topics "all of which are cast in terms of movement of output as

9546-599: The rebels after severe street fighting that left 3,000 rebels dead and 7,000 wounded. The cathedral was badly damaged, with its eighth-century chapel blown up by a mine. In the aftermath, many false atrocity stories circulated. The Siege of Oviedo in 1936 was a memorable event in the Spanish Civil War . The army garrison rose in support of the Nationalist coup d'état and withstood a siege of three months by an improvised Republican force until relieved in 1937. Oviedo

9657-606: The republic, Prieto had arguably maintained a more radical line than Largo Caballero, but he would now be identified as a relative moderate and opposed Largo Caballero's more revolutionary tendency. Prieto gave a thrilling campaign speech in Cuenca on 1 May 1936, prior to the 3 May repetition of the February 1936 election in the district in which the Popular Front would face among the right-wing rival José Antonio Primo de Rivera and, after

9768-444: The resignation of General Francisco Franco as candidate, Manuel Casanova . He brought Regenerationist memories and proposed Keynesian measures to develop the domestic market of the country. In words directed towards the firebrand faction of Largo Cabrello, Prieto asked for moderation, discipline and the disregarding of revolutionary excesses that would put the democratic government in peril. The speech in which Prieto also displayed

9879-403: The roads without in any way affecting the flow of investment along the normal channels. This assumes that banks are free to create resources to answer any demand. But Kahn adds that ... ... no such hypothesis is really necessary. For it will be demonstrated later on that, pari passu with the building of roads, funds are released from various sources at precisely the rate that is required to pay

9990-550: The ruler of Spain since the end of the Civil War, with a view to restoring Spanish democracy. The failure of that initiative led to his definitive retirement from active politics. He died in Mexico City in 1962. In Mexico, he wrote several books, such as Palabras al viento ( Words in the Wind , 1942), Discursos en América ( Discourses in America , 1944) and at the end of his life, Cartas

10101-521: The ruthless and systematic executions of Loyalists by the Nationalists, as part of General Mola 's policy of instilling terror in their ranks, began to filter to the areas held by the government, Prieto made a fervent plea to Spanish republicans on 8 August in a radiocast: Don't imitate them! Don't imitate them! Surpass them in moral conduct; surpass them by being generous. I do not ask you, however, that you should lose either strength in battle or zeal in

10212-442: The scale of the buildings is quite impressive. Oviedo's rich architectural tradition began with King Fruela I (757–768). King Fruela I of Asturias , the fourth of the Asturian monarchs, was the first decided promoter of the city as may be witnessed by his construction of both a palace and a nearby church. This church was later restored by Alfonso II. Oviedo owes to a later king, Alfonso II The Chaste (791–842), its establishment as

10323-525: The shoreline of the Bay of Biscay . Oviedo's proximity to the ocean of less than 30 kilometres (19 mi) in combination with its elevated position with areas of the city more than 300 metres above sea level causes the city to have a maritime climate , in spite of its not being located on the shoreline itself. The Kingdom of Asturias began in 720, with the Visigothic aristocrat Pelagius 's (685–737) revolt against

10434-404: The standard macroeconomic model in the developed nations during the later part of the Great Depression , World War II , and the post-war economic expansion (1945–1973). It was developed in part to attempt to explain the Great Depression and to help economists understand future crises. It lost some influence following the oil shock and resulting stagflation of the 1970s . Keynesian economics

10545-502: The time the sole economics professor at Cambridge. He had a continuing interest in the subject of unemployment, having expressed the view in his popular Unemployment (1913) that it was caused by "maladjustment between wage-rates and demand" – a view Keynes may have shared prior to the years of the General Theory . Nor were his practical recommendations very different: "on many occasions in the thirties" Pigou "gave public support [...] to State action designed to stimulate employment". Where

10656-438: The two men differed is in the link between theory and practice. Keynes was seeking to build theoretical foundations to support his recommendations for public works while Pigou showed no disposition to move away from classical doctrine. Referring to him and Dennis Robertson , Keynes asked rhetorically: "Why do they insist on maintaining theories from which their own practical conclusions cannot possibly follow?" Keynes set forward

10767-512: The various macroeconomic theories and models of how aggregate demand (total spending in the economy ) strongly influences economic output and inflation . In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy . It is influenced by a host of factors that sometimes behave erratically and impact production, employment, and inflation . Keynesian economists generally argue that aggregate demand

10878-426: The wage bargains which labour makes with the entrepreneurs," whereas, "If money wages change, one would have expected the classical school to argue that prices would change in almost the same proportion, leaving the real wage and the level of unemployment practically the same as before." Keynes considers his second objection the more fundamental, but most commentators concentrate on his first one: it has been argued that

10989-403: The wage is equal to the marginal product, which is a direct application of the marginalist principles developed during the nineteenth century (see The General Theory ). Keynes sought to supplant all three aspects of the classical theory. Although Keynes's work was crystallized and given impetus by the advent of the Great Depression , it was part of a long-running debate within economics over

11100-569: Was San Miguel de Lillo . The Chronicle of Albelda , one of the primary sources used to discern which King commissioned which building, only extends to 883. Because of this, constructions undertaken during Alfonso III's time as king were not documented. The following is a list of the notable architectural sites in Oviedo: Oviedo inspired the fictional city of Vetusta in Leopoldo Alas 's La Regenta . Other Spanish writers were inspired by

11211-557: Was narrow gauge railway. It was just over 7 km (4.3 mi) long and ran from Oviedo to the iron ore mines in the Villapérez and Naranco mining areas from 1880 to 1916. From 1922 to 1956, there was a tramway system in Oviedo. Oviedo is twinned with: Oviedo, Florida (U.S.) since 1877 Keynesian Heterodox Keynesian economics ( / ˈ k eɪ n z i ə n / KAYN -zee-ən ; sometimes Keynesianism , named after British economist John Maynard Keynes ) are

11322-432: Was a church dedicated to the Virgin Mary and the other construction was a palace. These were built just outside Oviedo, on Monte Lignum. The church Santa Maria de Naranco seems to originally have been a palace, but later repurposed into a church. The church has an atypical plan from other churches at its time, possibly because it was supposed to contain a throne room for the king. The other church built during Ramiro I's time

11433-483: Was found for it. This perception is reflected in Say's law and in the writing of David Ricardo , which states that individuals produce so that they can either consume what they have manufactured or sell their output so that they can buy someone else's output. This argument rests upon the assumption that if a surplus of goods or services exists, they would naturally drop in price to the point where they would be consumed. Given

11544-425: Was later redeveloped as New Keynesian economics , becoming part of the contemporary new neoclassical synthesis , that forms current-day mainstream macroeconomics . The advent of the financial crisis of 2007–2008 sparked renewed interest in Keynesian policies by governments around the world. Macroeconomics is the study of the factors applying to an economy as a whole. Important macroeconomic variables include

11655-412: Was necessary for the government to step in and put purchasing power into the hands of the working population through government spending. Thus, according to Keynesian theory, some individually rational microeconomic-level actions such as not investing savings in the goods and services produced by the economy, if taken collectively by a large proportion of individuals and firms, can lead to outcomes wherein

11766-463: Was published there has been debate over its meaning. Keynes begins the General Theory with a summary of the classical theory of employment, which he encapsulates in his formulation of Say's Law as the dictum " Supply creates its own demand ". He also wrote that although his theory was explained in terms of an Anglo-Saxon laissez faire economy, his theory was also more general in the sense that it would be easier to adapt to "totalitarian states" than

11877-523: Was subject to severe international isolation during Prieto's last ministry in Spain. Maritime access for Soviet material aid was effectively cut off by the attacks of Italian submarines , and the French border remained closed. After the defeat of the Spanish Republican Armed Forces on the northern front in October 1937, he offered his resignation, which was rejected. Prieto finally left

11988-565: Was the first king to push southwards into Arab territory. Following Ordoño I's death on May 27, 866, usurpers attempted to take the throne. The following king Alfonso III (866–910), who was thirteen at the time, took refuge in Castile until his followers had killed the usurper. Alfonso III's contributions to building construction are not nearly as well documented as Ramiro I's or Alfonso II's contributions. The Chronicle of Alfonso III does not mention any buildings created by Alfonso III, neither does

12099-479: Was the main royal residence. This court was controlled by members of the Asturian nobility. Ramiro I's (842–850) eight-year tenure was uneasy, he faced rebellions from the Counts of the Palace. The first rebellion against Ramiro I was led by Alroitus, and the second rebellion was led by Piniolus. Both of these rebellions were unsuccessful in removing Ramiro I. These rebellions may have been why Ramiro I built his palace in

12210-470: Was to shape it into a city similar to that of Visigothic Toledo. Once kings had settled in Oviedo, they adopted as much of the architectural style and imagery of Toledo. Even with this in mind, Oviedo did not necessarily resemble the old Visigothic capital in Toledo. The churches and buildings of Oviedo follow instead late provincial Roman tradition. Since Asturias at the time was an agriculturally poor area of Spain

12321-564: Was unnecessary because their internal opponents were already cowed and that Nationalist terror was because of their relative weakness. In September 1936, after the fall of Talavera de la Reina , in Toledo Province , to the rebels, Largo Caballero became the head of the government, and Prieto became Minister of Marine and Air. After the May 3–8, 1937 events in Barcelona in which the communists and

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