Abstract:Commenting on the title of his book in chapter 1 of The General Theory Keynes writes 'The object of such a title is to contrast the character of my arguments and conclusions with those of the Classica...Commenting on the title of his book in chapter 1 of The General Theory Keynes writes 'The object of such a title is to contrast the character of my arguments and conclusions with those of the Classical theory of the subject…. I shall argue that the postulates of the Classical Theory are applicable to a special case only and not to the general case.' However, at the time Keynes was writing, no comprehensive or authoritative account existed of the classical theory, but in the course of the debate since the publication of The General Theory a recognisable classical model has emerged and we will proceed to construct such a model for the purpose of comparing it with the familiar Keynesian model that has now become the standard textbook representation of Keynes's theory. We pointed out in Chapter 1 that Keynes attempted to identify those forces within the economy that would prevent the system adjusting automatically to full employment and, subsequently, Keynesian models have emphasised the need for discretionary government policy to ensure the full employment of resources. The distinguishing feature of classical economics, on the other hand, is that it presents a model of full employment.Read More
Publication Year: 1978
Publication Date: 1978-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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