Second Edition Of General Theory: Overview, Extensions, Methods and New Developments (Second Edition of the General Theory)

BOOK COVER......Page 1
HALF-TITLE......Page 3
TITLE......Page 4
COPYRIGHT......Page 5
CONTENTS......Page 6
FIGURES AND TABLES......Page 8
CONTRIBUTORS TO VOLUME 1......Page 9
CONTRIBUTORS TO VOLUME 2......Page 10
PREFACE......Page 11
NOTE ON ABBREVIATIONS......Page 12
INTRODUCTION......Page 13
Part I  OVERVIEW, EXTENSIONS, METHOD AND NEW DEVELOPMENTS......Page 41
BEHAVIOUR OF AN ECONOMIC SYSTEM WITHOUT GOVERNMENT INTERVENTION......Page 42
Is involuntary unemployment an ‘equilibrium’?......Page 43
Aggregate demand as the constraint on output and employment......Page 44
The principle of effective demand and the multiplier......Page 45
Do interest rate adjustments guarantee full employment?......Page 46
Do flexible money-wages and prices guarantee full employment?......Page 47
Long-run issues and uncertainties......Page 49
Reprise of the great macroeconomic debate......Page 50
Evidence for an empirical verdict favouring Keynes......Page 51
The GENERAL Theory: equilibrium or disequilibrium?......Page 52
The role of imperfect flexibility of money-wages and prices......Page 54
The ‘Beveridge curve’ and the criterion of full employment......Page 55
Inflation......Page 58
26  THE CHANGING SIGNIFICANCE OF INFLATION......Page 60
‘COST-PUSH’ AND BARGAINING......Page 61
Some interesting problems......Page 63
Weighting of objectives......Page 64
Medium of exchange......Page 65
The post-war years......Page 66
NOTES......Page 67
KEYNES’S ATTITUDE TO INFLATION......Page 69
INFLATION IN THE GENERAL THEORY......Page 71
AFTER THE GENERAL THEORY......Page 73
A KEYNESIAN REVISION......Page 75
THE VIEW FROM 1994......Page 76
CONCLUSION......Page 81
INTRODUCTION......Page 83
KEYNES ON THE ENDOGENEITY OF THE MONEY SUPPLY......Page 84
EVOLUTION OF THE BANKING SYSTEM SINCE THE 1930s......Page 87
ENDOGENOUS MONEY SUPPLY AND LIQUIDITY PREFERENCE......Page 89
CONCLUSION......Page 94
ACKNOWLEDGEMENT......Page 95
MACROECONOMIC BACKGROUND......Page 96
NEOCLASSICAL THEORY OF INVESTMENT......Page 98
A SURVIVAL THEORY OF BEHAVIOUR......Page 102
MACROECONOMIC IMPLICATIONS......Page 104
LONG-RUN DEVELOPMENT......Page 107
NOTES......Page 110
30  THE GENERAL THEORY IN AN OPEN ECONOMY CONTEXT......Page 112
KEYNES’S GENERAL THEORY AND AN OPEN ECONOMY......Page 114
CAPITAL MOVEMENTS......Page 115
FLEXIBLE EXCHANGE RATES AND EXPORT-LED GROWTH......Page 117
WHY THE PREFERENCE FOR EXPORT-LED GROWTH?......Page 118
THE FACTS VS. THE THEORY OF FLEXIBLE EXCHANGE RATES......Page 121
REFORMING THE INTERNATIONAL PAYMENTS SYSTEM......Page 122
A NEW INTERNATIONAL PAYMENTS SYSTEM......Page 124
APPENDIX: THIRLWALL’S LAW—AN EXTENSION OF KEYNES’S MULTIPLIER......Page 128
NOTES......Page 130
31  KEYNES AND FORMALISM*......Page 134
THE CURRENT STATE OF INTERPRETATION......Page 135
Marshall’s lectures to Keynes, 1905......Page 137
Keynes’s lecture notes, 1910–14......Page 138
Keynes’s lectures, 1932–5......Page 139
The General Theory......Page 141
Letters from Keynes to Harrod and MacDo’ugall, July 1936......Page 147
Econometrics......Page 150
AN OVERVIEW OF KEYNES’S POSITION......Page 152
IMPROVING THE GENERAL THEORY......Page 153
CONCLUSION......Page 155
NOTES......Page 156
INTRODUCTION......Page 160
The objectives of economics......Page 161
Theory appraisal......Page 162
Progress in economics......Page 165
The socio-political context of economic theory......Page 167
KEYNES’S RHETORICAL STYLE......Page 168
The encompassing approach......Page 170
The macro-micro structure......Page 171
Causal analysis......Page 174
The context of behaviour......Page 175
Rationality......Page 176
Analytical methods......Page 177
Equilibrium and dynamics......Page 181
The mathematical method......Page 184
The units of analysis......Page 185
Empiricism......Page 186
SUMMARY AND CONCLUSIONS......Page 187
ACKNOWLEDGEMENT......Page 188
33  J.M.KEYNES ON HISTORY AND CONVENTION......Page 189
THE STRUCTURE OF KEYNES’S GENERAL THEORY CONCEPT OF CONVENTION......Page 190
CONVENTION IN A ‘SECOND EDITION’ OF THE GENERAL THEORY......Page 195
BEYOND THE GENERAL THEORY......Page 197
KEYNES AND WITTGENSTEIN......Page 199
NOTES......Page 201
FROM A TREATISE ON PROBABILITY TO CHAPTER 12......Page 203
KEYNESIAN METHOD......Page 207
Choice and empirical regularities......Page 208
Closed systems and economic theory......Page 209
Hermeneutics, critical realism and Chapter 12......Page 213
NOTES......Page 216
KEYNES AND LATER CAMBRIDGE PHILOSOPHY......Page 219
VAGUE CONCEPTS AND FUZZY LOGIC......Page 224
NOTES......Page 228
Part II  KEYNES AND OTHERS......Page 230
INTRODUCTION......Page 231
MARX’S THEORY OF EFFECTIVE DEMAND AND THE CRITIQUE OF SAY’S LAW......Page 232
KEYNES’S OPINION OF MARX......Page 236
KEYNES’S ENTREPRENEUR ECONOMY......Page 237
FROM THE 1933 DRAFT TO THE GENERAL THEORY......Page 239
KEYNES’S DISSATISFACTION WITH THE GENERAL THEORY......Page 241
NOTES......Page 245
INTRODUCTION......Page 248
THE EVOLUTION OF DYNAMICS......Page 249
THE RISE OF ECONOMIC REDUCTIONISM AND ITS EVOLUTION......Page 251
MICRO AND MACRO......Page 254
KEYNES AND SCHUMPETER......Page 256
CONCLUDING REMARKS......Page 257
NOTES......Page 258
38  KEYNES, KALECKI AND THE GENERAL THEORY......Page 259
Neoclassical economics......Page 260
THE GENERAL THEORY OF EMPLOYMENT, INTEREST AND MONEY......Page 261
CRITICISMS OF THE GENERAL THEORY......Page 266
KALECKI......Page 267
KEYNES AND KALECKI COMPARED......Page 269
CONCLUSIONS......Page 272
NOTES......Page 273
INTRODUCTION......Page 276
LEIJONHUFVUD’S APPROACH......Page 277
LEIJONHUFVUD AND THE FUNDAMENTALISTS: DIFFERENCES AND SIMILARITIES......Page 279
SOME PHILOSOPHICAL AND METHODOLOGICAL ISSUES......Page 284
NOTES......Page 287
BIBLIOGRAPHY......Page 289
NAME INDEX......Page 329
SUBJECT INDEX......Page 333