D and Z in ROPE – Will the Real Keynes Please Stand Up?
The Review of Political Economy (ROPE) welcomed the year 2009 with an issue in which the first two articles use an interesting yet not very popular modeling framework, namely the aggregate demand/aggregate supply (D/Z) model from Chapter 3 of Keynes’s General Theory. Unfortunately, as I intend to show in this paper, the interpretations of Keynes’s D/Zmodel proposed by these two articles contradict each other. To resolve this unsatisfactory state of affairs, I will offer an evaluation of which of the two interpretations is more in line with Keynes’s own suggestions.
|Date of creation:||Nov 2009|
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References listed on IDEAS
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- David L. Roberts, 1978. "Patinkin, Keynes, and aggregate supply and demand analysis," History of Political Economy, Duke University Press, vol. 10(4), pages 549-576, Winter.
- Jochen Hartwig, 2004. "Beyond the Market Paradigm: on Keynes's Principle of Effective Demand, and on the Irrelevance of Rigidities for His Explanation of Involuntary Unemployment," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 12(1), pages 67-94.
- repec:ltr:wpaper:1993.16 is not listed on IDEAS
- J. Hartwig & M. E. Brady, 2008. "Comment: Hayes on Z," Cambridge Journal of Economics, Oxford University Press, vol. 32(5), pages 815-819, September.
- MG Hayes, 2007. "Keynes's Z function, heterogeneous output and marginal productivity," Cambridge Journal of Economics, Oxford University Press, vol. 31(5), pages 741-753, September.
- J. E. King, 1994. "Aggregate Supply and Demand Analysis since Keynes: A Partial History," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 17(1), pages 3-31, October.
- Paul Wells, 1987. "Keynes's Employment Function and the Marginal Productivity of Labor," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 9(4), pages 507-515, July.
- John King, 1993.
"Aggregate Supply and Demand Analysis Since Keynes: A Partial History,"
1993.16, School of Economics, La Trobe University.
- Jochen Hartwig, 2004. "Keynes's multiplier in a two-sectoral framework," Review of Political Economy, Taylor & Francis Journals, vol. 16(3), pages 309-334.
- Jochen Hartwig, 2007. "Keynes vs. the Post Keynesians on the Principle of Effective Demand," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 14(4), pages 725-739.
- M. G. Hayes, 2008.
"Keynes's Z function: a reply to Hartwig and Brady,"
Cambridge Journal of Economics,
Oxford University Press, vol. 32(5), pages 811-814, September.
- Olivier Allain, 2009.
"Effective Demand and Short-term Adjustments in the General Theory,"
Review of Political Economy,
Taylor & Francis Journals, vol. 21(1), pages 1-22.
- Olivier Allain, 2006. "Effective demand and short-term adjustments in the General Theory," Cahiers de la Maison des Sciences Economiques bla06018, Université Panthéon-Sorbonne (Paris 1).
- Palley, Thomas I, 1997. "Expected Aggregate Demand, the Production Period and the Keynesian Theory of Aggregate Supply," The Manchester School of Economic & Social Studies, University of Manchester, vol. 65(3), pages 295-309, June.
- Alfonso Palacio-Vera, 2009. "Capital Accumulation, Technical Progress and Labour Supply Growth: Keynes's Approach to Aggregate Supply and Demand Analysis Revisited," Review of Political Economy, Taylor & Francis Journals, vol. 21(1), pages 23-49.
- Victoria Chick, 1983. "Macroeconomics after Keynes: A Reconsideration of the General Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262530457, June.
- Jochen Hartwig, 2004.
"Explaining the Aggregate Price Level with Keynes’s Principle of Effective Demand,"
KOF Working papers
04-95, KOF Swiss Economic Institute, ETH Zurich.
- Jochen Hartwig, 2006. "Explaining the aggregate price level with Keynes's principle of effective demand," Review of Social Economy, Taylor & Francis Journals, vol. 64(4), pages 469-492.
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