IDEAS home Printed from https://ideas.repec.org/b/pke/ecbook/nggt.html
   My bibliography  Save this book

The Economics of Keynes: A New Guide to The General Theory

Author

Listed:
  • Mark Hayes

Abstract

This New Guide (cf Hansen's Guide to Keynes, 1953) to The General Theory presents Keynes's magnum opus as a sophisticated Marshallian theory of the competitive equilibrium of the economy as a whole. The author introduces several interpretative innovations to resolve many puzzles presented in the literature of the last 70 years. It is designed to be read in parallel with The General Theory and will allow modern readers to find their bearings before plunging into an in-depth analysis of major themes contained in The General Theory. The key areas in which this New Guide differs from the familiar exposition of current macroeconomics textbooks are clearly identified. The author reaches positive and hopeful conclusions for the development of economic theory and policy.

Suggested Citation

  • Mark Hayes, 2006. "The Economics of Keynes: A New Guide to The General Theory," Books, Post Keynesian Economics Society (PKES), number nggt.
    • Handle: RePEc:pke:ecbook:nggt
    as

    Download full text from publisher

    File URL: http://www.postkeynesian.net/downloads/MGH2006.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Weitzman, Martin L, 1982. "Increasing Returns and the Foundations of Unemployment Theory," Economic Journal, Royal Economic Society, vol. 92(368), pages 787-804, December.
    2. Robinson, Joan, 1977. "What Are the Questions?," Journal of Economic Literature, American Economic Association, vol. 15(4), pages 1318-1339, December.
    3. Philip Arestis & Malcolm Sawyer, 2004. "On the Effectiveness of Monetary Policy and of Fiscal Policy," Review of Social Economy, Taylor & Francis Journals, vol. 62(4), pages 441-463.
    4. Caspari, Volker & Barens, Ingo, 1997. "Own-rates of interest and their relevance for the existence of underemployment equilibrium positions," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 5442, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    5. Mark Hayes, 2007. "The Point of Effective Demand," Review of Political Economy, Taylor & Francis Journals, vol. 19(1), pages 55-80.
    6. Mark G. Hayes, 2006. "Value and probability," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 28(3), pages 527-538.
    7. C. Rogers, 2006. "Doing without money: a critical assessment of Woodford's analysis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 30(2), pages 293-306, March.
    8. Chick, Victoria & Dow, Sheila C, 2001. "Formalism, Logic and Reality: A Keynesian Analysis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 25(6), pages 705-721, November.
    9. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    10. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    11. Mark Hayes, 2006. "On the efficiency of fair trade," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 447-468.
    12. Jörg Bibow, 2000. "The Loanable Funds Fallacy in Retrospect," History of Political Economy, Duke University Press, vol. 32(4), pages 789-832, Winter.
    13. Michel De Vroey, 2004. "The History of Macroeconomics Viewed against the Background of the Marshall-Walras Divide," History of Political Economy, Duke University Press, vol. 36(5), pages 57-91, Supplemen.
    14. Roger Backhouse, 2004. "History and equilibrium: A partial defense of equilibrium economics," Journal of Economic Methodology, Taylor & Francis Journals, vol. 11(3), pages 291-305.
    15. Paul Davidson, 1996. "Reality and Economic Theory," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 18(4), pages 479-508, July.
    16. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    17. Paul Davidson, 2002. "Financial Markets, Money and the Real World," Books, Edward Elgar Publishing, number 2467.
    18. Dutt, Amitava Krishna, 1987. "Keynes with a Perfectly Competitive Goods Market," Australian Economic Papers, Wiley Blackwell, vol. 26(49), pages 275-293, December.
    19. J. Tobin, 1958. "Liquidity Preference as Behavior Towards Risk," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 25(2), pages 65-86.
    20. Anthony Philip Thirlwall, 2012. "Balance of Payments Constrained Growth Models: History and Overview," Palgrave Macmillan Books, in: Elias Soukiazis & Pedro A. Cerqueira (ed.), Models of Balance of Payments Constrained Growth, chapter 1, pages 11-49, Palgrave Macmillan.
    21. Mark Hayes, 2007. "Financial Bubbles," Chapters, in: Philip Arestis & Malcolm Sawyer (ed.), A Handbook of Alternative Monetary Economics, chapter 25, Edward Elgar Publishing.
    22. David Bunting, 2001. "Keynes’ Law and Its Critics," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 24(1), pages 149-163, September.
    23. John S. L. McCombie, 2001. "The Solow Residual, Technical Change, and Aggregate Production Functions," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 23(2), pages 267-297, January.
    24. J. A. Kregel, 1987. "Keynes’s Given Degree of Competition: Comment on McKenna and Zannoni," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(4), pages 490-495, July.
    25. Paul Davidson, 1986. "Finance, Funding, Saving, and Investment," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 9(1), pages 101-110, September.
    26. Casarosa, Carlo, 1984. "The Microfoundations of Keynes's Aggregate Supply and Expected Demand Analysis: A Reply," Economic Journal, Royal Economic Society, vol. 94(376), pages 941-945, December.
    27. Björn Hansson, 1985. "Keynes’s Notion of Equilibrium in the," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 7(3), pages 332-341, March.
    28. Giuseppe Fontana, 2004. "Rethinking Endogenous Money: A Constructive Interpretation Of The Debate Between Horizontalists And Structuralists," Metroeconomica, Wiley Blackwell, vol. 55(4), pages 367-385, November.
    29. David Reisman, 1986. "The Economics of Alfred Marshall," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-08515-6.
    30. James R. Crotty, 1996. "Is New Keynesian Investment Theory Really “Keynesian”? Reflections on Fazzari and Variato," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 18(3), pages 333-357, March.
    31. Richard Kahn, 1989. "The Economics of the Short Period," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-09817-0.
    32. Luigi L. Pasinetti, 2001. "The Principle of Effective Demand and Its Relevance in the Long Run," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 23(3), pages 383-390, March.
    33. J.A. Kregel, 1998. "Aspects of a Post Keynesian Theory of Finance," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 21(1), pages 111-133, September.
    34. Casarosa, Carlo, 1981. "The Microfoundations of Keynes's Aggregate Supply and Expected Demand Analysis," Economic Journal, Royal Economic Society, vol. 91(361), pages 188-194, March.
    35. David Dequech, 2003. "Conventional and unconventional behavior under uncertainty," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(1), pages 145-168.
    36. Victoria Chick, 1983. "Macroeconomics after Keynes: A Reconsideration of the General Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530457, December.
    37. Paul Davidson, 2006. "The declining dollar, global economic growth, and macro stability," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 28(3), pages 473-493.
    38. Avi J. Cohen, 2003. "Retrospectives: Whatever Happened to the Cambridge Capital Theory Controversies?," Journal of Economic Perspectives, American Economic Association, vol. 17(1), pages 199-214, Winter.
    39. Murray Glickman, 1994. "The Concept of Information, Intractable Uncertainty, and the Current State of the "Efficient Markets" Theory: A Post Keynesian View," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 16(3), pages 325-349, April.
    40. Asimakopulos, A, 1989. "The Nature and Role of Equilibrium in Keynes's General Theory," Australian Economic Papers, Wiley Blackwell, vol. 28(52), pages 16-28, June.
    41. J. S. L. McCombie, 2001. "What Does the Aggregate Production Function Show? Further thoughts on Solow’s “Second thoughts on Growth Theory”," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 23(4), pages 589-615, July.
    42. Kriesler, P., 1995. "Keynes, Kalecki and the Genarl Theory," Papers 95/39, New South Wales - School of Economics.
    43. Davidson, Paul, 1972. "Money and the Real World," Economic Journal, Royal Economic Society, vol. 82(325), pages 101-115, March.
    44. Eatwell, John, 1983. "The Long-Period Theory of Employment," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 7(3-4), pages 269-285, September.
    45. Kregel, J A, 1976. "Economic Methodology in the Face of Uncertainty: The Modelling Methods of Keynes and the Post-Keynesians," Economic Journal, Royal Economic Society, vol. 86(342), pages 209-225, June.
    46. Joan Robinson, 1934. "What is Perfect Competition?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 49(1), pages 104-120.
    47. A. P. Lerner, 1934. "The Concept of Monopoly and the Measurement of Monopoly Power," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 1(3), pages 157-175.
    48. Don Patinkin, 1978. "Keynes’ Aggregate Supply Function: A Plea for Common Sense1," History of Political Economy, Duke University Press, vol. 10(4), pages 577-596, Winter.
    49. David Dequech, 1999. "Expectations and Confidence under Uncertainty," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 21(3), pages 415-430, March.
    50. J. E. King, 2002. "A History of Post Keynesian Economics since 1936," Books, Edward Elgar Publishing, number 2135.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. M. G. Hayes, 2008. "Keynes's degree of competition," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 15(2), pages 275-291.
    2. M. G. Hayes, 2008. "Keynes's Z function: a reply to Hartwig and Brady," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 32(6), pages 1003-1003, November.
    3. Hanna Karolina Szymborska, 2022. "Rethinking inequality in the 21st century – inequality and household balance sheet composition in financialized economies," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 45(1), pages 24-72, January.
    4. Dumitriu, Ramona & Stefanescu, Razvan, 2013. "Provocările politicii monetare [Monetary policy challenges]," MPRA Paper 50261, University Library of Munich, Germany, revised 28 Sep 2013.
    5. Bondarenko, Yuliya & Kulinich, Tetiana, 2018. "Investigation Of Conditions And Benefits For Ukraine In The Transition Of Its Household In The Rank Of The Internal Investor Of The State," EUREKA: Social and Humanities, Scientific Route OÜ, issue 1, pages 10-22.
    6. Hayes, M.G., 2008. ""Fighting the Tide: Alternative Trade Organizations in the Era of Global Free Trade"--A Comment," World Development, Elsevier, vol. 36(12), pages 2953-2961, December.
    7. M. G. Hayes, 2017. "Keynes’s liquidity preference and the usury doctrine: their connection and continuing policy relevance," Review of Social Economy, Taylor & Francis Journals, vol. 75(4), pages 400-416, October.
    8. Vera Pirimova, 2011. "The Economic Growth and the Conjuncture Cycle in the Keynesian Models," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 3-20.
    9. Roger E. Backhouse & Bradley W. Bateman, 2011. "Methodological Issues in Keynesian Macroeconomics," Chapters, in: John B. Davis & D. Wade Hands (ed.), The Elgar Companion to Recent Economic Methodology, chapter 18, Edward Elgar Publishing.
    10. M. G. Hayes, 2013. "The State of Short-term Expectation," Review of Political Economy, Taylor & Francis Journals, vol. 25(2), pages 205-224, April.
    11. Victoria Chick, 2016. "On Microfoundations and Keynes’ Economics," Review of Political Economy, Taylor & Francis Journals, vol. 28(1), pages 99-112, January.
    12. Rivot, Sylvie, 2021. "Reading Keynes’s policy papers through the prism of his Treatise on Probability: information, expectations and revision of probabilities in economic policy," OSF Preprints s5qp9, Center for Open Science.
    13. Mustafa Orhan Özer, 2022. "The Relationship between Economic Growth and Unemployment Rate: Fractional Frequency Fourier ARDL Bounds Test Approach," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 72(72-1), pages 269-292, June.
    14. Strati, Francesco, 2012. "On Keynes's Z-function," MPRA Paper 42918, University Library of Munich, Germany.
    15. Sylvie Rivot, 2016. "Patinkin as a reader of Keynes’ : Are wage cuts a good remedy to unemployment?," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 23(6), pages 1001-1031, November.
    16. Sylvie Rivot, 2015. "Rule-based frameworks in historical perspective: Keynes' and Friedman's monetary policies versus contemporary policy-rules," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 22(4), pages 601-633, August.
    17. Angel Asensio, 2013. "Teaching Keynes’s theory to neoclassically formed minds," Chapters, in: Jesper Jespersen & Mogens Ove Madsen (ed.), Teaching Post Keynesian Economics, chapter 10, pages 163-186, Edward Elgar Publishing.
    18. Spahn, Peter, 2016. "Population growth, saving, interest rates and stagnation: Discussing the Eggertsson-Mehrotra model," Hohenheim Discussion Papers in Business, Economics and Social Sciences 04-2016, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    19. Angel Asensio, 2009. "Bad money and distributive conflict," Working Papers halshs-00496919, HAL.
    20. M.G. Hayes, 2012. "The General Theory: a neglected work?!," Chapters, in: Jesper Jespersen & Mogens Ove Madsen (ed.), Keynes’s General Theory for Today, chapter 1, pages 15-29, Edward Elgar Publishing.
    21. Milan Palát & Alois Kunc, 2013. "Alternative indicators of living standards and household consumption expenditure in a global perspective," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 61(2), pages 437-444.
    22. Sylvie Rivot, 2017. "Economic policy as expectations management: Keynes’ and Friedman's complementary approaches," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 24(5), pages 1053-1084, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jochen Hartwig, 2006. "Explaining the aggregate price level with Keynes's principle of effective demand," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 469-492.
    2. Jochen Hartwig, 2004. "Keynes versus the Post Keynesians on the Principle of Effective Demand," KOF Working papers 04-88, KOF Swiss Economic Institute, ETH Zurich.
    3. Gianfranco Giulioni & Marcello Silvestri & Edgardo Bucciarelli, 2017. "Firms’ Finance in an Experimentally Microfounded Agent-Based Macroeconomic Model," Metroeconomica, Wiley Blackwell, vol. 68(2), pages 259-320, May.
    4. Fontana, Giuseppe & Gerrard, Bill, 2004. "A Post Keynesian theory of decision making under uncertainty," Journal of Economic Psychology, Elsevier, vol. 25(5), pages 619-637, October.
    5. M. G. Hayes, 2013. "The State of Short-term Expectation," Review of Political Economy, Taylor & Francis Journals, vol. 25(2), pages 205-224, April.
    6. Bélyácz, Iván, 2013. "Várakozások, bizonytalanság, valószínűség. Értekezés a kockázat számszerűsítésének korlátairól [Expectations, uncertainty and probability. An assessment of the limits to the quantification of risk]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 749-780.
    7. Eckhard Hein, 2017. "Post-Keynesian macroeconomics since the mid 1990s: main developments," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 14(2), pages 131-172, September.
    8. Angel Asensio, 2012. "On Keynes’s Seminal Innovation and Related Essential Features: Revisiting the Notion of Equilibrium in The General Theory," Chapters, in: Thomas Cate (ed.), Keynes’s General Theory, chapter 1, Edward Elgar Publishing.
    9. Jamee K. Moudud, 2010. "Strategic Competition, Dynamics, and the Role of the State," Books, Edward Elgar Publishing, number 4241.
    10. Angel Asensio, 2013. "Teaching Keynes’s theory to neoclassically formed minds," Chapters, in: Jesper Jespersen & Mogens Ove Madsen (ed.), Teaching Post Keynesian Economics, chapter 10, pages 163-186, Edward Elgar Publishing.
    11. Claudio Sardoni, 2011. "Unemployment, Recession and Effective Demand," Books, Edward Elgar Publishing, number 13837.
    12. Elmina Homapour & Larry Su & Fabio Caraffini & Francisco Chiclana, 2022. "Regression Analysis of Macroeconomic Conditions and Capital Structures of Publicly Listed British Firms," Mathematics, MDPI, vol. 10(7), pages 1-28, March.
    13. Mueller, Elisabeth, 2008. "How does owners' exposure to idiosyncratic risk influence the capital structure of private companies?," Journal of Empirical Finance, Elsevier, vol. 15(2), pages 185-198, March.
    14. Marco Antonio Guimaraes Dias & Jose Paulo Teixeira, 2010. "Continuous-Time Option Games: Review of Models and Extensions," Multinational Finance Journal, Multinational Finance Journal, vol. 14(3-4), pages 219-254, September.
    15. Michaël Lainé, 2016. "Uncertainty, Probability and Animal Spirit [Incertitude, probabilités et esprits animaux]," Post-Print hal-02942874, HAL.
    16. Tomat, Gian Maria, 2008. "Modeling the Effects of Financial Constraints on Firm's Investment," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-26.
    17. Hui Chen & Jianjun Miao & Neng Wang, 2010. "Entrepreneurial Finance and Nondiversifiable Risk," The Review of Financial Studies, Society for Financial Studies, vol. 23(12), pages 4348-4388, December.
    18. Ahmad H. Juma’h & Yazan Alnsour, 2018. "Using Social Media Analytics: The Effect of President Trump’s Tweets On Companies’ Performance," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 17(1), pages 100-121, March.
    19. Lensink, Robert & Sterken, Elmer, 2000. "Capital Market Imperfections, Uncertainty and Corporate Investment in the Czech Republic," Economic Change and Restructuring, Springer, vol. 33(1-2), pages 53-70.
    20. M.G. Hayes, 2013. "Effective Demand: Securing the Foundations," Review of Political Economy, Taylor & Francis Journals, vol. 25(4), pages 661-671, October.

    More about this item

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory

    Statistics

    Access and download statistics

    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:pke:ecbook:nggt. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Jo Michell (email available below). General contact details of provider: https://edirc.repec.org/data/pksggea.html .

    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.