I plan to reread parts of the General Theory in the near future, but before doing so I thought I’d sketch out why I’ve never been able to take the book seriously (unlike the Tract on Monetary Reform, which is a fine book.) It seems clear to me that in the GT Keynes was focusing almost entirely on aggregate demand. That is, he was primarily concerned with nominal income determination, not how nominal income gets partitioned between prices and real output. Unfortunately, he doesn’t seem to have any model of nominal income. If you search the GT for an explanation of why U.S. nominal GDP is roughly $15 trillion, rather than $15 billion or $15 quadrillion, you won’t find any explanation beyond a perfunctory nod to the long run role of the classical model (MV=PY.)
Den ganzen Beitrag lesen…