Abstract
What has been Keynes’ revolutionary contribution? As shown in the preceding chapter, the revolution was solely the development of a theory of effective demand; i.e., a theory of the determination of the level of output as a whole.
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Notes
For a more rigorous solution see F. W. Dresch, “Index Numbers and the General Economic Equilibrium,’ Bulletin of the American Mathematical Society, Vol. XLIV, 1938, p. 134
And L. R. Klein, “Macroeconomics and the Theory of Ration Behavior,” Econometrica, Vol. XIV, 1946, p. 93.
See G. C. Evans, “Maximum Production Studied in a Simplified Economic System,” Econometrica, Vol. II, Jan. 1934, p. 37.
See L. P. Alford, “Technical Changes in Manufacturing Industries,” Recent Economic Changes, New York, 1929, p. 139.
Ruth P. Mack, The Flow of Business Funds and Consumer Purchasing Power, New York, 1941, pp. 255–56.
J. Franklin Ebersole, “The Influence of Interest Rates upon Entrepreneurial Decisions in Business — a Case Study,” Harvard Business Review, Vol. XVII, 1938, p. 35;
H. D. Henderson, “The Significance of the Rate of Interest,” Oxford Economic Papers, No. 1, 1938, p. 1;
J. E. Meade and P. W. S. Andrews, “Summary of Replies to Questions on Effects of Interest Rates,” Oxford Economic Papers, No. 1, 1938, p. 14.
See the article by Mordecai Ezekiel, “Statistical Investigations of Saving, Consumption, and Investment,” American Economic Review, Vol. XXXII, 1942, note 10, p. 283. The quotation in the text is from a letter of Keynes which was quoted by Ezekiel.
Similar results have been found for England. See A. J. Brown, “Interest, Prices and the Demand Schedule for Idle Money/’ Oxford Economic Papers, Number 2, 1939, p. 46.
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© 1966 Lawrence R. Klein
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Klein, L.R. (1966). The New and the Old. In: The Keynesian Revolution. Keynesian Studies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-16319-9_3
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