IDEAS home Printed from https://ideas.repec.org/a/kap/atlecj/v32y2004i3p222-232.html
   My bibliography  Save this article

The concept of equilibrium: A key theoretical element in Keynes' revolution

Author

Listed:
  • L. Johnson
  • Robert Ley
  • Thomas Cate

Abstract

This paper presents Keynes' concept of equilibrium, which was one key theoretical element that constituted the theoretical core of the General Theory and was critical in his attack on the classical model. Keynes' concept of equilibrium differed in structure, content, and purpose from that of the neoclassical orthodoxy. There were four unique features of Keynes' equilibrium and these features all reflect his overriding focus on involuntary unemployment. First, Keynes' equilibrium reflected a purposive function that differed in its maximand and normative content from his predecessors. Second, Keynes' equilibrium reflected the fact that the composition of national income determined the level of aggregate demand, which in turn determined of the equilibrium level of national income and employment. Third, his notion of equilibrium was based on use of the ex ante-ex post analysis. Finally, Keynes' equilibrium presented an alternative view of market-clearing. Copyright International Atlantic Economic Society 2004

Suggested Citation

  • L. Johnson & Robert Ley & Thomas Cate, 2004. "The concept of equilibrium: A key theoretical element in Keynes' revolution," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(3), pages 222-232, September.
    • Handle: RePEc:kap:atlecj:v:32:y:2004:i:3:p:222-232
    DOI: 10.1007/BF02299440
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/BF02299440
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/BF02299440?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Jan Reijnders (ed.), 1997. "Economics and Evolution," Books, Edward Elgar Publishing, number 1218.
    2. Laidler,David, 1999. "Fabricating the Keynesian Revolution," Cambridge Books, Cambridge University Press, number 9780521641739, September.
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. Thomas Cate (ed.), 1997. "An Encyclopedia of Keynesian Economics," Books, Edward Elgar Publishing, number 808.
    5. L. Johnson & Thomas Cate, 2000. "The analytical preconditions for Keynes' theory of money," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(1), pages 84-94, February.
    6. Paul M. Sweezy, 1939. "Demand Under Conditions of Oligopoly," Journal of Political Economy, University of Chicago Press, vol. 47(4), pages 568-568.
    7. Teodoro Dario Togati, 2001. "Keynes as the Einstein of Economic Theory," History of Political Economy, Duke University Press, vol. 33(1), pages 117-138, Spring.
    8. Anthony Philip Thirlwall, 1993. "The Renaissance of Keynesian Economics," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 46(186), pages 327-337.
    9. L. Johnson & Robert Ley & Thomas Cate, 2001. "Keynes' theory of money and his attack on the classical model," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(4), pages 409-418, November.
    10. Ron Stanfield, 1974. "Kuhnian Scientific Revolutions and the Keynesian Revolution," Journal of Economic Issues, Taylor & Francis Journals, vol. 8(1), pages 97-109, March.
    11. Thomas Mayer, 1959. "The Empirical Significance of the Real Balance Effect," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 73(2), pages 275-291.
    Full references (including those not matched with items on IDEAS)

    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. L. Johnson & Thomas Cate, 2002. "The general theory: Fabrication or revolution? David Laidler, 1999, pp. 377," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 30(1), pages 87-96, March.
    2. L. Johnson & Thomas Cate, 2006. "A History of Post Keynesian Economics Since 1936: A Review Article," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 34(1), pages 115-123, March.
    3. Korkut Erturk, 2002. "Revisiting the Old Theory of Cyclical Growth: Harrod, Kaldor cum Schumpeter," Review of Political Economy, Taylor & Francis Journals, vol. 14(2), pages 179-192.
    4. Hiroaki Sasaki, 2021. "Non‐renewable resources and the possibility of sustainable economic development in an economy with positive or negative population growth," Bulletin of Economic Research, Wiley Blackwell, vol. 73(4), pages 704-720, October.
    5. Funke, Michael & Strulik, Holger, 2000. "On endogenous growth with physical capital, human capital and product variety," European Economic Review, Elsevier, vol. 44(3), pages 491-515, March.
    6. Rao, B. Bhaskara, 2010. "Estimates of the steady state growth rates for selected Asian countries with an extended Solow model," Economic Modelling, Elsevier, vol. 27(1), pages 46-53, January.
    7. Prof. Dr. Adem KALCA & Resc. Assist. Atakan DURMAZ, 2012. "Diaspora As The Instrument Of Humane Capital," International Journal of Business and Social Research, LAR Center Press, vol. 2(5), pages 94-104, October.
    8. Moe, Espen, 2010. "Energy, industry and politics: Energy, vested interests, and long-term economic growth and development," Energy, Elsevier, vol. 35(4), pages 1730-1740.
    9. Burda, Michael C. & Zessner-Spitzenberg, Leopold, 2024. "Greenhouse Gas Mitigation and Price-Driven Growth in a Solow-Swan Economy with an Environmental Limit," IZA Discussion Papers 16771, Institute of Labor Economics (IZA).
    10. Gregory Casey & Ryo Horii, 2024. "A Generalized Uzawa Growth Theorem," Journal of Political Economy Macroeconomics, University of Chicago Press, vol. 2(2), pages 336-373.
    11. João Juchem Neto & Julio Claeyssen, 2015. "Capital-induced labor migration in a spatial Solow model," Journal of Economics, Springer, vol. 115(1), pages 25-47, May.
    12. Zhongwei Xing, 2018. "The impacts of Information and Communications Technology (ICT) and E-commerce on bilateral trade flows," International Economics and Economic Policy, Springer, vol. 15(3), pages 565-586, July.
    13. Erich Gundlach, 2003. "Growth Effects of EU Membership: The Case of East Germany," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 30(3), pages 237-270, September.
    14. Hajer Habib, 2023. "Remittances and Labor Supply: Evidence from Tunisia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1870-1899, June.
    15. Boikos, Spyridon & Bucci, Alberto & Stengos, Thanasis, 2013. "Non-monotonicity of fertility in human capital accumulation and economic growth," Journal of Macroeconomics, Elsevier, vol. 38(PA), pages 44-59.
    16. Boucekkine, Raouf & del Rio, Fernando & Licandro, Omar, 2005. "Obsolescence and modernization in the growth process," Journal of Development Economics, Elsevier, vol. 77(1), pages 153-171, June.
    17. Ottaviano, Gianmarco & Peri, Giovanni, 2008. "Immigration and National Wages: Clarifying the Theory and the Empirics," CEPR Discussion Papers 6916, C.E.P.R. Discussion Papers.
    18. Kawalec Paweł, 2020. "The dynamics of theories of economic growth: An impact of Unified Growth Theory," Economics and Business Review, Sciendo, vol. 6(2), pages 19-44, June.
    19. Das Gupta, Monica & Bongaarts, John & Cleland, John, 2011. "Population, poverty, and sustainable development : a review of the evidence," Policy Research Working Paper Series 5719, The World Bank.
    20. Kutuk, Yasin, 2022. "Inequality convergence: A world-systems theory approach," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 150-165.

    More about this item

    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:kap:atlecj:v:32:y:2004:i:3:p:222-232. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.