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Keynes's General Theory: valid only for modern capitalism?


  • David Dequech


Some interpretations restrict the applicability of the General Theory to modern capitalism because of the financial institutions assumed by Keynes. Although acknowledging some evidence in support of these interpretations, the paper argues that Keynes also developed the fundamental elements of a general theory of unemployment and potential instability under capitalism, without having clearly disentangled these elements from more institutionally specific ideas. Such a general theory applies to all types of capitalist economy, but still is institutionally specific, referring to capitalism. The paper extracts this more general message, which was partly obscured by Keynes's emphasis on modern financial institutions.

Suggested Citation

  • David Dequech, 2003. "Keynes's General Theory: valid only for modern capitalism?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 25(3), pages 471-491.
  • Handle: RePEc:mes:postke:v:25:y:2003:i:3:p:471-491
    DOI: 10.1080/01603477.2003.11051369

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    References listed on IDEAS

    1. John T. Harvey, 1996. "Orthodox Approaches to Exchange Rate Determination: A Survey," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 18(4), pages 567-583, July.
    2. Mark P. Taylor, 1995. "The Economics of Exchange Rates," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 13-47, March.
    3. Stephan Schulmeister, 1988. "Currency speculation and dollar fluctuations," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 41(167), pages 343-365.
    4. repec:mes:jeciss:v:31:y:1997:i:2:p:615-622 is not listed on IDEAS
    5. Shinji Takagi, 1991. "Exchange Rate Expectations: A Survey of Survey Studies," IMF Staff Papers, Palgrave Macmillan, vol. 38(1), pages 156-183, March.
    6. Taylor, Mark P. & Allen, Helen, 1992. "The use of technical analysis in the foreign exchange market," Journal of International Money and Finance, Elsevier, vol. 11(3), pages 304-314, June.
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