Jump to ContentJump to Main Navigation
The Keynesian Revolution in the Making, 1924–1936$
Users without a subscription are not able to see the full content.

Peter Clarke

Print publication date: 1990

Print ISBN-13: 9780198202196

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198202196.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (oxford.universitypressscholarship.com). (c) Copyright Oxford University Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 23 July 2021

The impact of the theory of effective demand

The impact of the theory of effective demand

Chapter:
(p.283) 12 The impact of the theory of effective demand
Source:
The Keynesian Revolution in the Making, 1924–1936
Author(s):

Peter Clarke

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198202196.003.0016

Keynes displayed the theory's analytical resources with unrivalled lucidity, notably in expounding the modus operandi of Bank rate. In the 1920s, he argued that in practice the economy was regulated by the level of employment and output, but accepted that this was so only because of rigidities which impaired the postulate of price flexibility. In the 1930s, his great intellectual coup was to disclose that in theory, too, the economy was regulated by the level of employment and output, and to argue that this was so regardless of any rigidities in wage rates. Little wonder that Keynes claimed this as a revolution, or, for the same reason, concluded that he had ‘no companions’. The zest and vitality of the General Theory tell their own story about the man who made it — about his own animal spirits in investing so much in it.

Keywords:   effective demand, General Theory, Keynes, employment, wage rates, price flexibility

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .