IDEAS home Printed from https://ideas.repec.org/a/ids/ijplur/v5y2014i1p24-39.html
   My bibliography  Save this article

Accounting for uncertainty in a simple Keynesian model

Author

Listed:
  • Angel Asensio
  • H. Sonmez Atesoglu

Abstract

This paper provides a Keynesian model that is closer to the key ideas of The General Theory compared to contemporary models, which are very limited versions of The General Theory that ignore true uncertainty and 'views about the future', which have significant implication for the determination of income and for interpreting and predicting what is occurring in the macro economy. The paper shows how changes in long-term expectations lead to a 'shifting equilibrium' level of aggregate output. It also presents a Keynesian endogenous money market model and shows how the Keynes's 'conventional' interest rate, typically ignored by the contemporary Keynesian models, affects the market rate. Our model thereby aims to be closer to The General Theory and more relevant to understanding the real world.

Suggested Citation

  • Angel Asensio & H. Sonmez Atesoglu, 2014. "Accounting for uncertainty in a simple Keynesian model," International Journal of Pluralism and Economics Education, Inderscience Enterprises Ltd, vol. 5(1), pages 24-39.
    • Handle: RePEc:ids:ijplur:v:5:y:2014:i:1:p:24-39
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=62392
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijplur:v:5:y:2014:i:1:p:24-39. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=319 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.