IDEAS home Printed from https://ideas.repec.org/p/ema/worpap/2013-11.html
   My bibliography  Save this paper

The Keynesian Model Framework And The Choice Of The Unit Of Measure

Author

Listed:
  • Alain Béraud

    (THEMA, Universite de Cergy-Pontoise)

Abstract

This contribution analyzes how Keynes and the keynesians asked the question of the choice of the unit of measure of the macroeconomic aggregates. Underlining the narrow relationships which exist between the lectures which Keynes professed between 1933 and 1935 and the diverse versions of the model IS-LM, it shows that the problems arise from the way Keynes had approached this problem. To argue about the monetary value of the aggregates leads to dichotomiser the model and does not allow to analyze correctly the interdependence between the labor market on one hand and the goods markets and the money market on the other hand. The model so formulated does not allow to treat in a rigorous way the effects of a variation of the monetary wage. It lets think, wrongly, that there is inevitably a full employment equilibrium.

Suggested Citation

  • Alain Béraud, 2013. "The Keynesian Model Framework And The Choice Of The Unit Of Measure," THEMA Working Papers 2013-11, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2013-11
    as

    Download full text from publisher

    File URL: http://thema.u-cergy.fr/IMG/documents/2013-11.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Keynes; IS-LM; units of measure.;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:ema:worpap:2013-11. 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: Stefania Marcassa (email available below). General contact details of provider: https://edirc.repec.org/data/themafr.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.