A triangle for the French translation of General Theory: Keynes, Sraffa, and Largentaye[Own-rates of interest and their relevance for the existence of underemployment equilibrium positions]

The paper studies the correspondence exchanged in 1938–1939 between Keynes and the French translator of General Theory, Jean de Largentaye, and between Keynes and Sraffa on this translation. The focus is on some analytical difficulties raised in this correspondence. After having described the circumstances of Sraffa’s involvement, the paper evokes a disagreement between Keynes and Largentaye about the kind of language that should be used in a book like General Theory. A section deals with clarifications and improvements brought about by the correspondence, particularly on the treatment of entrepreneurs’ profits and on the behaviour of lenders and borrowers in a financial crisis. Another section studies an important amendment to Chapter 17 on the concept of own-rate of interest. This amendment was suggested by Largentaye and accepted by Keynes in the context of various critiques expressed elsewhere by Pigou, Hicks, and Sraffa.