Details

Autor(en) / Beteiligte

• ROBERTS, DAVID L.

Titel

HOW CONSISTENT WAS KEYNES' THEORY OF EFFECTIVE DEMAND?

Ist Teil von

• Economic inquiry, 1984-01, Vol.22 (1), p.45-55

Ort / Verlag

Oxford, UK: Blackwell Publishing Ltd

Erscheinungsjahr

1984

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• Many economists view John Maynard Keynes' The General Theory of Employment, Interest and Money (1936) as a work of loosely integrated and sometimes inconsistent concepts. Most interpretations of the book have been developed in either nominal or real terms and have represented conflicting aspects of Keynesian theory. Don Patinkin (1976, 1978, 1979), in particular, asserts that Keynes' aggregate supply function is actually a schedule relating total variable costs to employment, and that Keynes' aggregate demand and supply analysis is inconsistent with profit maximization. However, it is shown that Keynes' theory of effective demand is based on the classical supply concept and the traditional principles of profit maximization. An interpretation in both nominal and real terms illustrates how the different aspects of Keynesian analysis are in fact consistent with each other, and how Keynes' demand and supply framework provides a basis for his conclusions.