The General Theory of Employment, Interest, and Money
The General Theory of Employment, Interest, and Money is the title of a book by John Maynard Keynes. The book is generally considered to be his masterpiece. It is largely credited with creating the terminology and shape of modern macroeconomics.[1] Published in February 1936, it sought to bring about a revolution, commonly referred to as the "Keynesian Revolution", in the way economists thought – especially in relation to the proposition that a market economy tends naturally to restore itself to full employment after temporary shocks. Regarded widely as the cornerstone of Keynesian thought, the book challenged the established classical economics and introduced important concepts such as the consumption function, the multiplier, the marginal efficiency of capital, the principle of effective demand and liquidity preference.
The General Theory Of Employment, Interest, And Money Media
Keynes's propensities to consume and to save as functions of income Y
Keynes's schedule of the marginal efficiency of capital
Graphical representation of Keynes's economic model, based on his own diagram at page 180 of the General Theory
The classical theory of employment for wages fixed in money terms (The three curves have different vertical scales.)
References
- ↑ Richard N Cooper, "The General Theory of Employment, Money, and Interest,"[1] Foreign Affairs (New York); Sep/Oct 1997
