The New and the Old
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.
KeywordsInterest Rate Real Wage Capital Good Full Employment Supply Curve
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- 6.See L. P. Alford, “Technical Changes in Manufacturing Industries,” Recent Economic Changes, New York, 1929, p. 139. Google Scholar
- Ruth P. Mack, The Flow of Business Funds and Consumer Purchasing Power, New York, 1941, pp. 255–56.Google Scholar
- 7.J. Franklin Ebersole, “The Influence of Interest Rates upon Entrepreneurial Decisions in Business — a Case Study,” Harvard Business Review, Vol. XVII, 1938, p. 35; Google Scholar
- H. D. Henderson, “The Significance of the Rate of Interest,” Oxford Economic Papers, No. 1, 1938, p. 1; Google Scholar
- 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.Google Scholar
- 9.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.Google Scholar
- 13.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.Google Scholar