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| | KIEL SCHOOL |
 | | The "Kiel School" refers to the group of German reform economists attached to the Kiel Institute of World Economics during the interwar period. |
 | | In the Kiel School approach, technical progress continuously modifies the real rate of return on capital, thereby causing for sectoral maladjustments, permanent excess capacity and technological unemployment during the process of growth. |
 | | The Kiel School's structural growth theory implied policy measures which were different from the conventional ones: "aggregate" measures to reduce unemployment, such as lowering wages or stimulating demand, ignored inter-sectoral difficulties, the root cause of the problem, and thus needed to be more precisely directed. |
| cepa.newschool.edu /het/schools/kiel.htm (697 words) |
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