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.

The Coming of J. M. Keynes

Money ◽  
2017 ◽  
Author(s):  
John Kenneth Galbraith ◽  
James K. Galbraith
Keyword(s):  
Monetary Policy ◽  
General Theory ◽  
Economic System ◽  
Money Supply ◽  
Full Employment ◽  
Gold Content ◽  
Fiscal Policies ◽  
Theoretical Justification

This chapter examines John Maynard Keynes's views with respect to money. It first considers Keynes's argument that, left to itself and given time, the economic system would find its equilibrium with all or nearly all its willing workers employed. If Keynes's instinct were right, the hopes of the monetary radicals would also destroyed. A change in the gold content of the dollar or an increase in banks' reserves would not mean more borrowers, more deposits, more money and a surge of the economy back to full employment. It followed that monetary policy would not work. What was needed was a policy that increased the money supply available for use and then ensured its use. The chapter considers Keynes's theoretical justification for his views in the 1936 book The General Theory of Employment Interest and Money, the fiscal policies he advocated, his repudiation of Say's Law, and Keynesian policies on taxation.

John Maynard Keynes

2017 ◽  
Author(s):  
John Kenneth Galbraith
Keyword(s):  
General Theory ◽  
Government Spending ◽  
Full Employment ◽  
Government Expenditures ◽  
John Maynard Keynes ◽  
Winston Churchill ◽  
Modern Economy ◽  
The Government

This chapter examines the economic ideas of John Maynard Keynes. According to Keynes, the modern economy does not necessarily find its equilibrium at full employment; it can find it with unemployment. This is the underemployment equilibrium, in which Say's Law no longer holds; there can be a shortage of demand. The government can and should take steps to overcome this shortage. The chapter discusses in more detail the underemployment equilibrium, the repeal of Say's Law, the call for government spending uncovered by revenues to sustain demand—all of which made up the so-called the Keynesian Revolution. In particular, it considers Keynes's central prescription that there should be government expenditures financed by borrowing to sustain demand and employment. It also analyzes Keynes's criticism of Winston Churchill, his A Treatise on Money (1930), and the economic discussion that followed the publication of The General Theory of Employment Interest and Money (1936).

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.

scholarly journals KEYNES, MILL, AND SAY’S LAW: A COMMENT ON ROY GRIEVE’S MISTAKEN CRITICISMS OF MILL

2018 ◽  
Vol 40 (2) ◽  
pp. 267-273 ◽  
Author(s):  
James C. W. Ahiakpor
Keyword(s):  
Interest Rates ◽  
Real World ◽  
Capital Investment ◽  
Full Employment ◽  
Classical Analysis ◽  
John Maynard Keynes ◽  
Relative Prices ◽  
The Real ◽  
Monetary Economy ◽  
Value Of Money

Employing different meanings of classical concepts of saving, capital, investment, and money, and incorrectly attributing the assumption of full employment of labor and a world of certainty to classical analysis, John Maynard Keynes ([1936] 1974) faulted Say’s Law as irrelevant to the real world. Roy Grieve (2016) ignores previous clarifications of Keynes’s misrepresentations and misunderstandings of John Stuart Mill’s restatements of the law. He employs similar misrepresentations and misunderstandings of Mill’s explanations as Keynes did. His model of Mill’s analysis is incapable of explaining how variations in relative prices, the value of money, and interest rates coordinate production, consumption, and savings decisions in a monetary economy.

scholarly journals q-analogues of Ehrhart polynomials

2015 ◽  
Vol 59 (2) ◽  
pp. 339-358 ◽  
Author(s):  
F. Chapoton
Keyword(s):  
General Theory ◽  
Classical Theory ◽  
Linear Form ◽  
Partially Ordered Sets ◽  
Weighted Sums ◽  
Ordered Sets ◽  
Ehrhart Polynomials ◽  
Lattice Polytopes ◽  
Ehrhart Series ◽  
Special Case

AbstractWe consider weighted sums over points of lattice polytopes, where the weight of a point v is the monomial qλ(v) for some linear form λ. We propose a q-analogue of the classical theory of Ehrhart series and Ehrhart polynomials, including Ehrhart reciprocity and involving evaluation at the q-integers. The main novelty is the proposal to consider q-Ehrhart polynomials. This general theory is then applied to the special case of order polytopes associated with partially ordered sets. Some more specific properties are described in the case of empty polytopes.

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.

The Macroeconomic thought of Nicholas Barbon

2007 ◽  
Vol 29 (1) ◽  
pp. 101-116
Author(s):  
James H. Ullmer
Keyword(s):  
General Theory ◽  
Scientific Inquiry ◽  
Economic Thought ◽  
John Maynard Keynes ◽  
Major Defect

Nicholas Barbon (1640–1698) is little appreciated by most historians of economic thought. He is sporadically mentioned in a few writings—probably the most well-known being the favorable reference to him made by John Maynard Keynes (1883–1946) in The General Theory of Employment, Interest, and Money (Keynes 1936, p. 359). The fullest treatment of Barbon's economic ideas is contained in The Origin of Scientific Economics: English Economic Thought 1660–1776 by William Louis Letwin (Letwin 1963, pp. 48–75). Letwin considers a major defect of Barbon's first purely scientific inquiry into economics, A Discourse of Trade (Barbon 1690), and by implication, his other economic writings, to be “the logical incoherence of its parts” (Letwin 1963, p. 57). This criticism is not surprising in light of the pre-paradigm period in which Barbon was writing.

Hypo-elasticity and plasticity

1956 ◽  
Vol 234 (1196) ◽  
pp. 46-59 ◽  
Keyword(s):  
General Theory ◽  
Constitutive Equations ◽  
Work Hardening ◽  
Strain Curve ◽  
Simple Extension ◽  
Logarithmic Strain ◽  
Elasticity Equations ◽  
Plastic Materials ◽  
Special Case

A general theory of work-hardening incompressible plastic materials is developed as a special case of Truesdell’s theory of hypo-elasticity. Equations are given in general coordinates for a single loading followed by one unloading, and attention is directed to materials for which the stress-logarithmic strain curve for unloading in simple extension is linear. Using a particular case of the corresponding constitutive equations for loading, which is a generalization of that suggested by Prager, applications are made to a number of specific problems.

The behaviour of supersonic flow past a body of revolution, far from the axis

1950 ◽  
Vol 201 (1064) ◽  
pp. 89-109 ◽  
Keyword(s):  
Supersonic Flow ◽  
General Theory ◽  
Body Of Revolution ◽  
Flow Past ◽  
Physical Importance ◽  
Special Case ◽  
Pointed Body ◽  
Asymptotic Forms

A theory is developed of the supersonic flow past a body of revolution at large distances from the axis, where a linearized approximation is valueless owing to the divergence of the characteristics at infinity. It is used to find the asymptotic forms of the equations of the shocks which are formed from the neighbourhoods of the nose and tail. In the special case of a slender pointed body, the general theory at large distances is used to modify the linearized approximation to give a theory which is uniformly valid at all distances from the axis. The results which are of physical importance are summarized in the conclusion (§ 9) and compared with the results of experimental observations.

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