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

    References listed on IDEAS

    as
    1. Debreu, Gerard, 1984. "Economic Theory in the Mathematical Mode," American Economic Review, American Economic Association, pages 267-278.
    2. Luigino Bruni & Francesco Guala, 2001. "Vilfredo Pareto and the Epistemological Foundations of Choice Theory," History of Political Economy, Duke University Press, vol. 33(1), pages 21-49, Spring.
    3. E. Roy Weintraub, 1991. "Allais, Stability, and Liapunov Theory," History of Political Economy, Duke University Press, vol. 23(3), pages 383-396, Fall.
    4. Michel De Vroey, 2006. "The temporary equilibrium method: Hicks against Hicks," The European Journal of the History of Economic Thought, Taylor & Francis Journals, pages 259-278.
    5. Jean-Sébastien Lenfant, 2005. "Psychologie individuelle et stabilité d'un équilibre général concurrentiel dans le Traité d'économie pure de Maurice Allais," Revue économique, Presses de Sciences-Po, vol. 56(4), pages 855-888.
    6. Michel De Vroey, 2006. "The temporary equilibrium method: Hicks against Hicks," The European Journal of the History of Economic Thought, Taylor & Francis Journals, pages 259-278.
    7. Goulven Rubin, 2011. "Hicks et l'économie de la dépression," Recherches économiques de Louvain, De Boeck Université, pages 57-87.
    8. Franco DONZELLI, 2010. "Hicks on Walrasian equilibrium in the 1930s and beyond," Departmental Working Papers 2010-39, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
    9. J. R. Hicks, 1942. "Consumers' Surplus and Index-Numbers," Review of Economic Studies, Oxford University Press, vol. 9(2), pages 126-137.
    10. J. R. Hicks, 1941. "The Rehabilitation of Consumers' Surplus," Review of Economic Studies, Oxford University Press, vol. 8(2), pages 108-116.
    11. John S. Chipman & Jean-Sébastien Lenfant, 2002. "Slutsky's 1915 Article: How It Came to Be Found and Interpreted," History of Political Economy, Duke University Press, vol. 34(3), pages 553-597, Fall.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Keynes; IS-LM; units of measure.;

    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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Stefania Marcassa). General contact details of provider: http://edirc.repec.org/data/themafr.html .

    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 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.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.