engleski

Leijonhufvud's interpretation of J.M.Keynes (monetary economics) revisited

Liberation from Say's law (by Keynes) resulted in macroeconomics as economics sub-discipline. Keynes's „General theory“ can be regarded as a special case of the Classical theory. At Keynes present are two revolutions. Consequences of the General Theory were to establish "Keynesianism" as a third body of analysis antithetical to traditional monetary approaches and unrelated to value theory. In general competitive equilibrium theory present is "absence of money illusion“. Keynes' diagnosis of depressions is - the general level of long-term asset prices is lower than warranted. Keynes assumes that wealth effect affects current consumption in the same direction as the substitution effect. Speculative activity plays large role. Keynes' critics have cast him in the mold of a "static and non-historical" system. At Neo - Keynesianism premise is that there are institutional barriers to prices flexibility which lead to imbalance vectors.

Keynes, (Neo) Classicals, Monetary Theory, Price Vector, Neo-Keynesianism

DOI: 10.2507/daaam.scibook.2015.03.