The General Theory

Tyler Beck Goodspeed

in Rethinking the Keynesian Revolution

Published in print September 2012 | ISBN: 9780199846658
Published online September 2012 | e-ISBN: 9780199950126 | DOI:
The General Theory

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This chapter takes up the second Keynesian iteration of the Wicksell connection. The chapter examines, in particular, how Keynes’s marginal propensity to consume, liquidity preference, marginal efficiency of capital, and notion of effective demand fit into chapter 17 of The General Theory, which is where the influence of the Keynes-Hayek-Sraffa exchange on Keynes’s thought is most evident. Echoing Leijonhufvud, the chapter argues that the Wicksell “connection” retains a strong presence in The General Theory, though Keynes has heavily disguised it.

Keywords: Keynes; marginal efficiency of capital; liquidity preference; marginal propensity to consume; effective demand; Leijonhufvud

Chapter.  10207 words.  Illustrated.

Subjects: Economic Systems

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