ABSTRACT
In this chapter we will mainly discuss two macroeconomic hypotheses: Phillips curve and Verdoorn’s law, which seem to be accepted and added to modelling in different forms irrespective of whether it is Keynesian or neoclassical theorists or other types of heterodox analysts. It seems that the two are accepted more as empirical fact than theoretical hypotheses. We will however also pay attention to the interaction between the real and financial variables with respect to stability matters. Central to our discussion is the concept of inertia in different forms particularly so called labour hoarding and its underlying causes and consequences.
