Friday, 12 July 2013 00:00

Cobweb Theory

Nicholas Kaldor was a Hungarian-born Economist who spent much of his working life at LSE and advising the British Government. He is credited with being one of the first to propose VAT. Amongst his other contributions was an explanation for wildly fluctuating and unstable prices in pork markets. This has since been broadened to include other markets and is known as Cobweb Theory.