Abstract
The various neoclassical schools share the idea that the theory of prices does constitute the centre of economic theory; it tends to merge with the theory of the general equilibrium and the distribution of resources. Prices play a part at three distinct levels. At first, they are the indicators the economic agents use in order to formulate their plans, and they synthesise in such a way the whole set of useful economic data. They are also the means of micro and macroeconomic adjustments since their changes enable firms to reconsider those plans and to make them be consistent. They express the equilibrium by summing up the results of the various adjustments and thus by providing a system of equilibrium prices.
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Notes and References
Robinson, Joan (1983) ‘Idologia e Logica’ (with Frank Wilkinson), in Attualità di Keynes: A cura di F. Vicarelli (Rome: Libri del Tempo, Laterza).
cf. Tobin, James (1981) Asset Accumulation and Economic Activity: Reflections on the Contemporary Macroeconomic Theory (Oxford: Basil Blackwell).
Keynes, J. M. (1936) The General Theory of Employment, Interest and Money (London: Macmillan). A similar effect can concern the price of the means of production relative to that of wage-goods.
From a letter to R. F. Harrod (August 1936). Reprinted in Keynes, J. M. (1973) Collected Writings (London and Billingsgate: Macmillan). Also see (1937 ) ‘The general theory of employment’, Quarterly Journal of Economics (Collected Writings, XIV, pp. 119ff.).
See Barrère, Alain (1976) ‘La progression instable’, in Barrère, A. et al., Controverses sur le système keynésien (Paris: Economica).
Cf. Weintraub, Sidney (1978) Keynes, Keynesians and Monetarists (Philadelphia: University of Philadelphia Press) p. 78.
Kregel, Jan (1932) ‘Money, expectations and relative prices in Keynes’ monetary equilibrium’, in Economie Appliqueé, XXXV, 3.
Minsky, Human P. (1975) John Maynard Keynes (New York: Columbia University Press) p. 75.
Hicks, J. R. (1975) The Crisis in the Keynesian Economics, Yrjö Jahnsson Lectures (Oxford: Basil Blackwell).
The roulette does not belong to the field of uncertainty, Keynes says. On the contrary, the forecast of a world war is uncertain, as well as that about the interest rate or the price of copper in twenty years, or even the time when an innovation becomes obsolete. On those points, see Vicarelli, F. (1983) ‘Dall’equilibrio alla probabilità: una rilettura del metodo delle teoria generale’, in Attualità di Keynes.
Cf. Robinson, Joan (1971) Economic Heresies (London and Basingstoke: Macmillan).
Diatkine, S. and D. (1976) ‘La théorie de l’emploi et les théories des systèmes de prix’, in Controverses sur le système keynésien.
For a more global conception of the price continuum relative to the aggregate supply price, see Barrere, Alain (1979) Déséquilibres Economiques et Contre-Revolution Keynésienne (Paris) (Economica) Chapter 7.
See Barrère, C., Kébabdjian, G. and Weinstein, O. (1983) Lire la crise (Paris: PUF).
Olson, M. (1979) ‘An evolutionary approach to inflation and stagflation’, in Gapinski, J. and Rockwood, C. (eds) Essays in Post-Keynesian Inflation (Cambridge, Mass.: Ballinger).
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© 1989 Association pour le Développement des Etudes Keynésiennes
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Barrère, C. (1989). Keynesian Assumptions and the Dynamics of Price. In: Barrère, A. (eds) Money, Credit and Prices in Keynesian Perspective. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20117-4_7
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