Expectations, according to Pigou, could be actual concerns regarding real factors, but could also themselves be a source of fluctuations independent from any other factors (Collard 1983). Pigou also believed that 'psychological causes' had the potential of persisting to the point that the system would be unable to attain equilibrium, and expectations may therefore be formed that address genuine uncertainties (Collard 1983). Forecasting errors, according to Pigou, were deserving of attention, due to their addictive and multiplicative effects (Collard 1983). Pigou believed that eliminating errors resulting from expectations, such as optimism or pessimism, could reduce industrial fluctuations by approximately 50% (Collard 1983). It is noted by Collard (1983) that Pigou's assessment of the effects that expectation has on the economy are more thorough than anything similar put forth by Marshall.
The opposition Pigou had against Keynes later developed into the formulation of the Pigou effect or real balance effect, which documented a strategy in which the problem of high unemployment would correct itself without reliance on economic policies put forth by Keynes (Pressman 1999).
Pigou also received criticism from feminist groups, as he was often regarded as a misogynist (Aslanbeigui 1997). Pigou held the belief that women were inferior on many levels, and recommended that they remain in the home. However, he also had concern for the double burden women faced, and called for legislated paid pregnancy leaves and regulated work conditions. Aslanbegui (1997) sought to study Pigou's views in the context in which he lived, the late Victorian era. This author concluded that the views held by Pigou were typical of a Victorian man desiring to preserve the patriarchal status quo, and that he was shy and felt disengaged from women. However, "Pigou was willing to accept many exceptions to the Victorian declaration that women were inferior (Aslanbeigui 1997, p.313)."
Pigou had some influence on the development of theories concerning disequilibrium. As explained by Aslanbeigui (1996, p.290), Pigou
Separated external...
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