Pigou_effect Pigou_effect

Pigou effect - Definition
Related Words: Actually, Administer, Aftermath, Aim, Ambition, Amperage, Angle, Animus, Artifact, Ascendancy, Aspect, Aspiration, Author, Authority, Bear

The Pigou effect is an economics term that refers to the stimulation of employment by a rise in the real value of liquid balances and a result of declining prices. As the real value of wealth increases, consumption will increase, therefore increasing employment and income. Classical economics models envisaged that full employment could be reached as a result of reduction in wages.

The Pigou effect was first popularised by Arthur Cecil Pigou (1877-1959).


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Example Usage of effect
jessicafarinaro: Super happy about my rapid healing but really bummed about the meds' side effect I feel like i got sucker punched :(
Sawyers_Mess: Just heard two guys going on about having sex with an alien in mass effect! Right gamers are sad.... http://myloc.me/4XdQg
djlokash: @ChelsC1 psshhhhtttt, bars close at 2, by 230 street sweeping was in full effect.
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