IDEAS home Printed from
   My bibliography  Save this paper

From A Treatise on Money to the General Theory: John Maynard Keynes' Departure from the Doctrine of Forced Saving


  • Ho-Po Crystal Wong


I examine John Maynard Keynes’ struggle with the doctrine of the classical forced saving during the period 1924-1936 from when he worked on A Treatise on Money to the completion of his General Theory. The forced saving notion has been developed as a key mechanism of how monetary expansion results in wealth redistribution and change in production in the classical school. I primarily focus on the role of discussion and criticism in the development of Keynes’ thought. I investigate what led John Maynard Keynes to completely abolish ideas related to forced saving and place his emphasis on effective demand in the General Theory and its process. I provide evidence suggesting that the development of the General Theory is closely linked with the abolition of the forced saving doctrine and argue that such notion is internally inconsistent with Fundamental Equations and subsequent theory of effective demand in the explanation of the problem of unemployment.

Suggested Citation

  • Ho-Po Crystal Wong, "undated". "From A Treatise on Money to the General Theory: John Maynard Keynes' Departure from the Doctrine of Forced Saving," Center for the History of Political Economy Working Paper Series 2013-14 4Creation-Date: 2, Center for the History of Political Economy.
  • Handle: RePEc:hec:heccee:2013-14

    Download full text from publisher

    File URL:
    File Function: main text
    Download Restriction: no


    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:hec:heccee:2013-14. 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: (Center for the History of Political Economy Webmaster). General contact details of provider: .

    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.