Keynes and Anchorless Banking

1998 ◽  
Vol 20 (1) ◽  
pp. 71-82 ◽  
Author(s):  
Thomas K. Rymes
Keyword(s):  
General Theory ◽  
Supply And Demand ◽  
Monetary Theory ◽  
John Maynard Keynes ◽  
Monetary Economy ◽  
The Future ◽  
Theory Of Value ◽  
Working Out ◽  
Theory Of Production ◽  
Special Case

In The General Theory, John Maynard Keynes broke with the quantity theory of money, not just in working out a monetary theory of production but, as he says, in arguing the case for a monetary theory of value. Keynes writes (CW, 7, pp. xxii-xxiii):A monetary economy, we shall find, is essentially one in which changing views about the future are capable of influencing the quantity of employment and not merely its direction. But our method of analyzing the economic behaviour of the present under the influence of changing ideas about the future is one which depends on the interaction of supply and demand, and is in this way linked up with our fundamental theory of value. We are thus led to a more general theory, which includes the classical theory with which we are familiar, as a special case.

How can we restore the generality of the General Theory?

2018 ◽  
Vol 43 (5) ◽  
pp. 1397-1415 ◽  
Author(s):  
Teodoro Dario Togati
Keyword(s):  
General Theory ◽  
Research Programme ◽  
Monetary Theory ◽  
Systematic Fashion ◽  
Key Points ◽  
Theory Of Production

AbstractIn this paper, I tackle the key issue raised by Pasinetti, namely why Keynes failed to accomplish his revolution and build a unifying ‘monetary theory of production’ framework. I argue that this occurred because, following his Marshallian background, he adopted an oversimplified view of the structure of theories, a problem which, following Leontief, might be labelled as ‘implicit theorising’ (IT). By making a comparison between the General Theory and standard macroeconomics based on Lakatos’s ‘research programme’ notion, this paper explores IT in a systematic fashion and stresses two key points. First, Keynes did not attack the ‘true’ orthodox postulates but only the conclusions deriving from them. Secondly, he failed to articulate his own research programme effectively. Based on these points, the paper concludes that filling such gaps in Keynes’s theory is the precondition for restoring his generality claim.

scholarly journals EFEITOS REAIS DA POLÍTICA MONETÁRIA: UMA DISCUSSÃO SOBRE OS MECANISMOS DE TRANSMISSÃO

2003 ◽  
Vol 29 ◽  
Author(s):  
Marcos Wagner Da Fonseca ◽  
Marcos Roberto Vasconcelos
Keyword(s):  
Monetary Policy ◽  
General Theory ◽  
Monetary Theory ◽  
General View ◽  
Postwar Period ◽  
The Real ◽  
Transmission Mechanisms ◽  
Monetary Economy

Este trabalho busca apresentar uma visão geral sobre os mecanismos de transmissão da política monetária. O início da discussão obrigatoriamente passa pela controvérsia dentro da teoria monetária sobre o papel da moeda na economia e sua capacidade em afetar as variáveis reais. Sintetiza-se o debate ocorrido entre as correntes da economia monetária no período pós-guerra, entre os keynesianos da síntese neoclássica e os monetaristas. A evolução das idéias fez surgir outras correntes de pensamento, como os novos-clássicos, os novoskeynesianos e os pós-keynesianos, mas o ponto de destaque é que Keynes, na Teoria Geral, já havia realizado um tratamento dos mecanismos de transmissão de forma mais clara que muitos de seus seguidores e adversários. Respeitando esta controvérsia, o trabalho apresenta os mecanismos de transmissão da política monetária, baseado nas discussões realizadas durante a década de 1990. Abstract This work search to present a general view on the transmission mechanisms of the monetary policy. The beginning of the discussion obligatorily raisin for the controversy inside of the monetary theory on the paper of the coin in the economy and its capacity in affecting the real variables. The debate is synthesized happened among the currents of the monetary economy in the postwar period, between the keynesians of the neoclassical synthesis and the monetarists. The evolution of the ideas made to appear other thought currents, as the new-classic ones, the new-keynesians and the post-keynesians, but the prominence point is that Keynes, in the General Theory, had already accomplished a treatment of the transmission mechanisms in a clearer way than many of his followers and opponents. Respecting this controversy, the work presents the transmission mechanisms of the monetary policy, based on the discussions accomplished during the decade of 1990.

scholarly journals Zur Aktualität Sraffas

1994 ◽  
Vol 24 (94) ◽  
pp. 143-165
Author(s):  
Klaus Schabacker
Keyword(s):  
General Equilibrium ◽  
Wage Rate ◽  
Monetary Theory ◽  
Price Determination ◽  
Neoclassical Theory ◽  
Alternative Approach ◽  
Intertemporal Equilibrium ◽  
Theory Of Value ◽  
Rate Of Profit ◽  
Special Case

Sraffa's Production of Commodities by Means of Commodities shows a system of price equations which requires an exogenous determination either of the wage rate or the rate of profit. The fault of classical, Marxian and early neoclassical theory lies within their attempt to derive a rate of profit from a given magnitude called capital. The rate of profit is conceived of as a concept of production. Both, the modern Neoclassics and Sraffa, reject such a view. The former resolves the problem of determining the rate of profit into an intertemporal equilibrium of prices and regards the Sraffanian theory of value as a special case of a general equilibrium. This paper argues that, on the contrary, Sraffa has proposed an alternative approach to the theory of price determination, because he suggests that the rate of profit should be derived from the rate of interest on money. The latter may forma part of a monetary theory, which can cope with the problem of unemployment while neoclassiscal theory submits the problem of employment to a theory of allocation.

scholarly journals Keynes’s Time in the Times of Capitalism

2015 ◽  
Vol 1 (1) ◽  
pp. 18-34
Author(s):  
Luiz Gonzaga Belluzzo
Keyword(s):  
General Theory ◽  
John Maynard Keynes ◽  
Political Transformations ◽  
Monetary Economy ◽  
The World ◽  
Magnum Opus ◽  
The Times

This paper aims to discuss the process of construction of the thought of John Maynard Keynes about capitalism. Therefore, it discusses the economic, social and political transformations undergone in the world, in general, and in England, in particular, that have shaped the reality about which he reflected. It also discusses the evolution of these reflections until his magnum opus, The General Theory of Employment, Interest and Money, in which he presents the limits and possibilities of a monetary economy of production.

scholarly journals KEYNES’ CRITIQUE OF THE CLASSICAL AND NEOCLASSICAL THEORIES OF THE RATE OF INTEREST

2019 ◽  
Vol 37 (72) ◽  
Author(s):  
André Cutrim Carvalho ◽  
David Ferreira Carvalho
Keyword(s):  
General Theory ◽  
Interest Rates ◽  
Economic System ◽  
Classical Theory ◽  
Critical Analysis ◽  
Full Employment ◽  
John Maynard Keynes ◽  
Independent Variables ◽  
Special Case

The classical theory of the rate of interest is the theory that mainstream economists inherited chiefly from Marshall, Ricardo and Wicksell, and is also this same theory that John Maynard Keynes criticizes in his General Theory for presenting an explanation centered solely on the special case of full employment. Despite the difficulties, Keynes offered a scathing critique of the theory of the rate of interest from both classical and neoclassical economists. This was only made possible because the traditional rationale of these economists remained imprisoned by the trap set by Say's Law. Therefore, within this context, the main objective of this paper is to undertake a critical analysis of Keynes regarding the classical general theory of the rate of interest, through which we may then demonstrate the points on which he was in disagreement with the neoclassical school. The main conclusion is that Keynes considered that traditional analysis is defective because it was unable to identify the independent variables of the system. Indeed, savings and investment are determined variables and not the determinants of the dynamics of the capitalist economic system. Such determined variables are the twin product of the true determinants, i.e., from the propensity to consume, from the scale of the marginal efficiency of capital and from the interest rates, and this is why the flow of investments tends to expand until the marginal efficiency of capital remains at the rate of interest.

scholarly journals An Interpretation of Controversial Points in Keynes's General Theory

2015 ◽  
Vol 1 (1) ◽  
pp. 71-95
Author(s):  
Mario Luiz Possas
Keyword(s):  
General Theory ◽  
Supply And Demand ◽  
General Concept ◽  
Usual Sense ◽  
Effective Demand ◽  
Demand Functions ◽  
First Case ◽  
Long Run ◽  
Working Out

The paper offers an interpretation of the General Theory based on two main assumptions:  (i) that its core is heterodox (meaning far from Neoclassical references) and (ii) that, while not working out a dynamic model, it is neither static nor based on the notion of equilibrium in the usual sense, i.e. as an attractor. It amounts rather to a foreword to a dynamic theory, given its emphasis on (future) time and expectations. The exposition is centered on the division between short and long run (period) with corresponding particularities and distinctions.  In the first case, a more general concept of the principle of effective demand is proposed, from which the relation investment/savings, supply and demand functions at the Micro level – where basic variables are determined -, the “point of effective demand” and corresponding aggregative versions are interpreted. In the second case, investment decisions are examined on the light of chap. 17, concerning investment in capital assets, i.e. individual demand for assets. The central concept of uncertainty is introduced here, giving place to money as an asset as well as to liquidity preference and the rate of interest theories. Long term expectations under uncertainty give rise to other two key concepts – the state of confidence and the convention. As a result, his peculiar and crucial notion of instability of investment follows, as well as its extension to the capitalist economy as a whole.

Extreme self-sacrifice beyond fusion: Moral expansiveness and the special case of allyship

2018 ◽  
Vol 41 ◽  
Author(s):  
Daniel Crimston ◽  
Matthew J. Hornsey
Keyword(s):  
General Theory ◽  
Biological Markers ◽  
Natural Environment ◽  
Relevant Dimension ◽  
Special Case

AbstractAs a general theory of extreme self-sacrifice, Whitehouse's article misses one relevant dimension: people's willingness to fight and die in support of entities not bound by biological markers or ancestral kinship (allyship). We discuss research on moral expansiveness, which highlights individuals’ capacity to self-sacrifice for targets that lie outside traditional in-group markers, including racial out-groups, animals, and the natural environment.

Post-Soviet economy development: From the past to the future

2017 ◽  
pp. 5-21 ◽  
Author(s):  
E. Yasin
Keyword(s):  
Present Situation ◽  
Soviet Economy ◽  
Market Reforms ◽  
Democratic Development ◽  
The Past ◽  
Current Period ◽  
The Future ◽  
History Of ◽  
Working Out ◽  
A Current

The article is devoted to major events in the history of the post-Soviet economy, their influence on forming and development of modern Russia. The author considers stages of restructuring, market reforms, transformational crisis, and recovery growth (1999-2011), as well as a current period which started in2011 and is experiencing serious problems. The present situation is analyzed, four possible scenarios are put forward for Russia: “inertia”, “mobilization”, “decisive leap”, “gradual democratic development”. More than 30 experts were questioned in the process of working out the scenarios.

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