Some Implications of the Alternative Interpretation
In chapters 3 to 6 an interpretation of The General Theory has been put forth that rests upon Keynes’s theory of investment and finance. This interpretation is an alternative to today’s conventional wisdom, which holds that the valuable insights of The General Theory have been incorporated into the neoclassical synthesis. However, whereas the neoclassical synthesis leads to propositions that the normal path of a market economy can be characterized as one of full-employment growth, the alternative interpretation leads to propositions that the normal path of a capitalist economy is cyclical; that is, the normal path can be characterized as a succession of system states. Thus, the two interpretations of Keynes lead to substantially different views of the normal functioning of a capitalist economy.
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