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L'allocation des ressources et leur niveau d'emploi dans le chapitre 21 de la Théorie Générale

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  • Alexander Tobon

Abstract

The aim of this paper is to show the role of prices in Keynes?s monetary theory. More precisely, we show that in chapter 21 of the General Theory there exists a mechanism of relative prices. The employment level is determined, simultaneously, by effective demand and by relative prices. This result is derived from Keynesian price theory. In this theory, a rise in the quantity of money produces a non proportional price variation through effective demand. We show that Keynes?s theory is, at the same time, a theory of relative prices and a theory of the price level.

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Bibliographic Info

Article provided by Dalloz in its journal Revue d'économie politique.

Volume (Year): Volume 116 (2006)
Issue (Month): 3 ()
Pages: 419-428

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Handle: RePEc:cai:repdal:redp_163_0419

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Web page: http://www.cairn.info/revue-d-economie-politique.htm

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Keywords: Keynes; prices; money; allocation; employment;

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