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Central themes of Paul Davidson's >i>John Maynard Keynes>/i>


  • Robert W. Dimand


Paul Davidson's admirable and concise new introduction to Keynes the person and to the ideas of Keynes emphasizes Keynes's demonstration that even a competitive economy with freely flexible wages and prices may lack an adjustment mechanism to automatically restore full employment without active government stabilization policy. This paper underlines Davidson's critique of the neutral money axiom of neoclassicals economics by showing that money cannot be both neutral and superneutral, uses student notes on Keynes's lectures to extend Davidson's account of how IS-LM came to be accepted as a representation of Keynes, and questions Davidson's claim that the existence of equilibrium in neoclassical economics depends on assuming that all goods are gross substitutes.

Suggested Citation

  • Robert W. Dimand, 2009. "Central themes of Paul Davidson's >i>John Maynard Keynes>/i>," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 32(1), pages 59-72, September.
  • Handle: RePEc:mes:postke:v:32:y:2009:i:1:p:59-72

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    References listed on IDEAS

    1. Philip Arestis & Malcolm Sawyer, 2003. "Reinventing fiscal policy," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 26(1), pages 3-25.
    2. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
    3. Atish Ghosh & Steven Phillips, 1998. "Warning: Inflation May Be Harmful to Your Growth," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 672-710, December.
    4. Günter Coenen & Roland Straub, 2005. "Does Government Spending Crowd in Private Consumption? Theory and Empirical Evidence for the Euro Area," International Finance, Wiley Blackwell, vol. 8(3), pages 435-470, December.
    5. Mark Gertler & Jordi Gali & Richard Clarida, 1999. "The Science of Monetary Policy: A New Keynesian Perspective," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1661-1707, December.
    6. Peter van Els & Alberto Locarno & Julian Morgan & Jean-Pierre Villetelle, 2001. "Monetary policy transmission in the euro area: what do aggregate and national structural models tell us?," Temi di discussione (Economic working papers) 433, Bank of Italy, Economic Research and International Relations Area.
    7. Michael Sarel, 1996. "Nonlinear Effects of Inflation on Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 43(1), pages 199-215, March.
    8. Fagan, Gabriel & Henry, Jerome & Mestre, Ricardo, 2005. "An area-wide model for the euro area," Economic Modelling, Elsevier, vol. 22(1), pages 39-59, January.
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