The New and the Old

  • Lawrence R. Klein
Part of the Keynesian Studies book series (KST)


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.


Interest Rate Real Wage Capital Good Full Employment Supply Curve 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    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 CrossRefGoogle Scholar
  2. And L. R. Klein, “Macroeconomics and the Theory of Ration Behavior,” Econometrica, Vol. XIV, 1946, p. 93.CrossRefGoogle Scholar
  3. 4.
    See G. C. Evans, “Maximum Production Studied in a Simplified Economic System,” Econometrica, Vol. II, Jan. 1934, p. 37.CrossRefGoogle Scholar
  4. 6.
    See L. P. Alford, “Technical Changes in Manufacturing Industries,” Recent Economic Changes, New York, 1929, p. 139. Google Scholar
  5. Ruth P. Mack, The Flow of Business Funds and Consumer Purchasing Power, New York, 1941, pp. 255–56.Google Scholar
  6. 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
  7. H. D. Henderson, “The Significance of the Rate of Interest,” Oxford Economic Papers, No. 1, 1938, p. 1; Google Scholar
  8. 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. 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
  10. 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

Copyright information

© Lawrence R. Klein 1966

Authors and Affiliations

  • Lawrence R. Klein
    • 1
  1. 1.Wharton School of Finance and CommerceUniversity Of PennsylvaniaUSA

Personalised recommendations