Abstract
Economics has always been a ‘divided’ science. Keynes’s predecessors saw the division as one between the theory of value and distribution and the theory of money and absolute prices. Keynes — in Chapter 21 of The General Theory — suggests that the correct division is between the theory of the firm and industry and the theory of output as a whole. Both halves should use the same concepts in order to avoid the ‘double life’ of living on ‘two sides of the moon’ without knowing the route that connects them.1 As we saw, Chapter 21 is a notable attempt to use many of the concepts of the theory of the firm to explain the response of prices to a change in the money supply.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Notes
John Maynard Keynes, The General Theory of Employment, Interest and Money (1936), in The Collected Writings of John Maynard Keynes, vol. vii (Cambridge, 1971–9) p. 293.
Robert M. Solow, ‘On Theories of Unemployment’, American Economic Review, vol. 70, no. 1 (1980) pp. 1–11.
John Maynard Keynes, ‘How to Pay for the War’ (1940), in Collected Writings, vol. ix, pp. 369–439.
Author information
Authors and Affiliations
Copyright information
© 1991 Piero V. Mini
About this chapter
Cite this chapter
Mini, P.V. (1991). ‘We have completely failed …’. In: Keynes, Bloomsbury and The General Theory. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-11651-5_10
Download citation
DOI: https://doi.org/10.1007/978-1-349-11651-5_10
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-11653-9
Online ISBN: 978-1-349-11651-5
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)