Abstract
The objective of this paper is to generalize the principle of effective demand and examine some of its implications for Post Keynesian monetary theory. A generalization of the principle of effective demand is required for at least two interdependent reasons: (i) the consensus version found in the Keynesian literature obscures the relationship between monetary theory and the principle of effective demand, and, (ii) a general version of the principle of effective demand is required to examine and evaluate the properties of Post Keynesian monetary theory.
Helpful comments from T.K. Rymes, participants at the conference and seminar participants at Carleton University are gratefully acknowledge. The usual disclaimer applies.
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Rogers, C. (1997). Post Keynesian Monetary Theory and the Principle of Effective Demand. In: Cohen, A.J., Hagemann, H., Smithin, J. (eds) Money, Financial Institutions and Macroeconomics. Recent Economic Thought Series, vol 53. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-5362-1_2
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