,*APT] #a 
,! ,KEYNESIAN 0,REVOLUTION0 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,! !ORIES ( B\RGEOIS ECONOMI/S D[N TO ,DAVID ,RIC>DO W]E DEVELOP$ 
BE=E !RE WAS A REAL AW>5ESS ( ! CLASS ISSUES ?AT DOM9ATE CAPITALI/ 
SOCIETY4 ,RIC>DO1 AS ,M>X WROTE1 0MADE ! ANTAGONISM ( CLASS 9T]E/S1 
( WAGES & PR(ITS1 ( PR(ITS & R5T1 ! />T+ PO9T ( HIS 
9VE/IGATIONS1 NAIVELY TAK+ ?IS ANTAGONISM = A SOCIAL LAW ( NATURE4 ,BUT 
BY ?IS />T ! SCI5CE ( B\RGEOIS ECONOMY HAD REA*$ ! LIMITS BEYOND 
:I* IT C\LD NOT PASS10.<#a.> = A FUR!R CRITICAL DEVELOPM5T C\LD LEAD ONLY 
TO ! RECOGNITION ( ! CONTRADICTIONS & LIMITATIONS ( ! CAPITALI/ 
SY/EM ( PRODUCTION4 ,BY DO+ :AT C\LD NOT BE DONE BY B\RGEOIS ECONOMI/S1 
,M>X FELT HIMSELF TO BE ! TRUE HEIR1 & ! DE/ROY] AS WELL1 ( B\RGEOIS 
ECONOMY4 

,?\< B\RGEOIS ECONOMY WAS 9DE$ UNABLE TO ADVANCE AS ,M>X HAD SAID1 IT 
WAS ABLE TO *ANGE ITS APPE>ANCE4 ,CLASSICAL ECONOMI/S HAD EMPHASIZ$ 
PRODUCTION & ! SY/EM AS A :OLE4 ,!IR FOLL[]S EMPHASIZ$ EX*ANGE & 
9DIVIDUAL 5T]PRISE4 ,ECONOMIC !ORY BECAME 9CREAS+LY APOLOGETIC UNTIL ! 
:OLE PROBLEM ( ! SOCIAL RELATIONS ?AT UND]LIE ECONOMIC PROCESSES WAS DONE 
AWAY ) ?R\< ! REJECTION ( ! CLASSICAL VALUE !ORY 9 FAVOR ( ! 
SUBJECTIVE VALUE CONCEPT ( ! M>G9AL-UTILITY S*OOL4 ,9CREAS+ ECONOMIC 
DIFFICULTIES1 H[EV]1 CREAT$ AN 9T]E/ 9 ! BUS9ESS CYCLE1 9 ! 
FACTORS ?AT MAKE = PROSP]ITY1 CRISIS1 & DEPRESSION4 ,! NEO-CLASSICAL 
S*OOL1 :OSE BE/-KN[N PROPON5T WAS ,ALFR$ ,M>%ALL1 ATTEMPT$ TO TRANS=M 
ECONOMY 9TO A PRACTICAL SCI5CE2 IT S\<T WAYS & MEANS TO 9FLU5CE M>KET 
MOVEM5TS & TO 9CREASE BO? ! PR(ITABILITY ( CAPITAL & ! G5]AL 
SOCIAL WELF>E4 

,9 ! MID/ ( ! ,GREAT ,DEPRESSION !RE APPE>$ ,JOHN ,MAYN>D 
,KEYNES' WORK1 ,! ,G5]AL ,!ORY ( ,EMPLOYM5T1 ,9T]E/ & 
,MONEY1 :I* WAS SOON HAIL$ AS A 0REVOLUTION0 9 ECONOMIC 
?\<T & :I* L$ TO ! =MATION ( A S*OOL ( 0,KEYNESIAN 
ECONOMICS40 ,:ILE P]SI/5T 0OR?ODOX0 ECONOMI/S OPPOS$ 
?IS S*OOL AS EI!R 0SOCIALI/IC0 OR 0ILLUSORY10 
9CONSI/5T SOCIALI/S ATTEMPT$ TO BL5D ,M>X ) ,KEYNES1 ACCEPT+ 
,KEYNES' !ORIES AS ! 0,M>XISM0 ( \R TIME4 ,M>X'S 
SKEPTICISM AB\T ! FUTURE ( B\RGEOIS SOCIETY WAS N[ SAID TO 9DICATE ONLY 
HIS 9ABILITY OR UNWILL+NESS TO CRITICIZE ! CLASSICI/S CON/RUCTIVELY4 ,& 
( ,KEYNES IT WAS SAID ?AT HE MADE REAL ,ALFR$ ,M>%ALL'S ASPIRATIONS = 
A RE=M$ & IMPROV$ CAPITALISM4 

,JOHN ,MAYN>D ,KEYNES' POPUL>ITY IS ( LONG /&+ & WAS CREAT$ BY 
HIS BOOK ,! ,ECONOMIC ,CONSEQU5CES ( ! ,PEACE4 ,KEYNES OPPOS$ 
! H>%NESS ( ! ,V]SAILLES ,TREATY BECAUSE >\ND 0,G]MANY AS A 
C5TRAL SUPPORT ! RE/ ( ! ,EUROPEAN ECONOMIC SY/EM GR\P$ ITSELF1 & ON 
! PROSP]ITY & 5T]PRISE ( ,G]MANY ! PROSP]ITY ( ! RE/ ( ! 
,CONT95T MA9LY DEP5D$40.<#b.> ,IT WAS SUGGE/$ ?AT ,KEYNES' CONCILIATORY 
REASON+ WAS MOTIVAT$ BY HIS FE> ( AN ANTI-CAPITALI/ REVOLUTION 9 ! 
WAKE ( ! W>4 ,O!RS SUSPECT$ ?AT HIS CON/RUCTIVE PROPOSALS ) REG>D 
TO ! PEACE W]E M]ELY SUBTLE WAYS ( FUR!R+ ,BRITI% PO/W> =EIGN 
POLICIES4 ,?\< !SE TWO CONC]NS UND\BT$LY PLAY$ A P>T 9 ! 
=MULATION ( HIS OP9ION1 ,KEYNES' OPPOSITION TO ! TREATY WAS BAS$ 
MA9LY ON ECONOMIC CONSID]ATIONS & WAS DET]M9$ BY HIS CONVICTION ?AT ! 
CAPITALI/ WORLD C\LD OP]ATE RATIONALLY4 

,! W> ITSELF WAS TO ,KEYNES ONLY AN ACCID5TAL & UNHAPPY 9T]LUDE 9 ! 
LIB]ALI/IC PROCESS ( CAPITAL =MATION4 ,9 #a#i#a#i1 HE FE>$ AN IMPAIRM5T ( 
CAPITAL ACCUMULATION BECAUSE 0! LABOR+ CLASSES MAY NO LONG] BE 
WILL+ TO =EGO SO L>GELY1 & ! CAPITALI/ CLASSES1 NO LONG] CONFID5T 
( ! FUTURE1 MAY SEEK TO 5JOY MORE FULLY !IR LIB]TIES ( CONSUMPTION SO 
LONG AS !Y LA/1 & ?US PRECIPITATE ! H\R ( !IR 
CONFISCATION40.<#c.> 
,! DI/URB$ 0ACCUMULATIVE HABITS0 HAD TO BE RE/OR$2 = AT ?IS 
TIME ,KEYNES /ILL UNRES]V$LY FAVOR$ ! 09EQUALITY ( ! 
DI/RIBUTION ( WEAL?0 AS ! BE/ MEANS = A VA/ AMASS+ ( CAPITAL4 
,) ! W>'S 5D HE EXPECT$ A RETURN TO 9T]NATIONAL FREE TRADE & 
UNLIMIT$ 9VE/M5T OPPORTUNITIES4 ,! SIMPLE/ WAY TO RE/ORE 
0NORMALCY0 WAS1 ( C\RSE1 TO RE9/ITUTE PRE-W> CONDITIONS4 ,?IS 
IMPLI$ TREAT+ ,G]MANY AS IF !RE HAD BE5 NO W> AT ALL4 

,BUT AFT] EXP]I5C+ ! P]IOD ( 0W>-SOCIALISM0 9 ,5GL& 
& ON ! ,CONT95T & WITNESS+ ! ,BOL%EVIK 0EXP]IM5T0 9 
,RUSSIA1 ,KEYNES CEAS$ TO ?9K ?AT CAPITALISM WAS RE/RICT$ TO 
LAISSEZ-FAIRE ECONOMICS2 9 FACT1 HE N[ CONSID]$ 
0LAISSEZ-FAIRE A LEG5D1 A BIT ( METAPHYSICAL ?9K+40 
,HE WAS CONV9C$ ?AT ! CAPITALI/ ECONOMY C\LD BE REGULAT$ SO AS TO 
FUNCTION BETT] ) \T LOS+ ITS CAPITALI/ *>ACT]4 ,& IF ! NATIONAL 
ECONOMY C\LD BE /E]$ 9TO DEF9ITE1 DESIRABLE *ANNELS1 IT MI<T ALSO BE 
COORD9AT$ ) ! ECONOMIC NE$S ( ! WORLD4 ,BECAUSE S*EMES ( CONTROL 
W]E CONCEIVABLE1 ,KEYNES WAS CONFID5T ?AT !IR PRACTICAL REALIZATION M]ELY 
DEP5D$ UPON ! PRES5CE ( WISE M5 ( GOOD WILL4 0,HE BELIEV$ 9 ! 
SUPREME VALUE ( 9TELLECTUAL LEAD]%IP1 9 ! WISDOM ( ! *OS5 
FEW10.<#d.> & 9 
!IR ABILITY TO 9FLU5CE ! ECONOMIC PROCESSES 9 A SOCIALLY SATISFACTORY 
WAY4 

,9 B\RGEOIS ECONOMIC !ORY M5 BEHAVE RATIONALLY 9 A M>KET :]E 
SELF-9T]E/ MEETS SELF-9T]E/1 EA* VY+ = ADVANTAGE & EA* LIMIT+ 
! O!R4 ,?R\< ALL ! UNHAMP]$ 9DIVIDUAL ATTEMPTS TO MAXIMIZE 
WANT-SATISFACTION1 ! M>KET E/ABLI%ES PRICE RELATIONS :I* T5D T[>D ! 
MO/ ECONOMICAL ALLOCATION ( RE S\RCES4 ,KEYNES DID NOT *ALL5GE ! 
ASS]TION ?AT ! OPTIMUM ( ECONOMIC SELF-9T]E/ LEADS TO ! MAXIMUM ( 
SOCIAL WELL-BE+2 BUT HE DID F9D ?AT PEOPLE SELDOM KN[ !IR REAL 
9T]E/S4 ,! 9DIVIDUALI/IC PR9CIPLE WAS NOT 5\< TO RECOGNIZE TRUE 
SELF-9T]E/4 ,SAV+S & CONSUMPTION RE/RICTIONS1 = 9/ANCE1 AT TIMES 
SUIT BO? ! 9DIVIDUAL & SOCIETY2 BUT AT O!R TIMES !Y MAY IMPOV]I% 
BO?4 ,TO F9D \T JU/ :5 ONE OR ANO!R POLICY IS APPROPRIATE REQUIRES A 
SOCIAL PO9T ( VIEW4 

,! NOTION ?AT ! SATISFACTION ( 9DIVIDUALI/IC SELF-9T]E/ DEM&S A 
CONSID]ATION ( ! SOCIAL SY/EM'S NE$S =C$ ,KEYNES TO TURN FROM 
0MICRO-ECONOMICS0 TO ! 0MACRO-ECONOMICS0 ( ! 
CLASSICI/S4 ,?IS 9VOLV$ A P>TIAL RETURN TO ! LABOR !ORY ( VALUE2 = 
! T]MS ?AT DESCRIBE ! S+LE FIRM & 9DIVIDUAL PRICE DET]M9ATION >E 
NOT SUIT$ TO A !ORY DISCUSS+ SOCIAL AGGREGATES SU* AS TOTAL 9COME1 
CONSUMPTION1 9VE/M5T1 EMPLOYM5T & !IR ECONOMIC 9T]DEP5D5CE4 ,?IS 
*ANGE ON ,KEYNES' P>T HAS BE5 CONSID]$ AN 0IMPLICIT FUNDAM5TAL 
CRITICISM ( ! EXI/+ SOCIAL ORD]40.<#e.> ,9 REALITY IT ATTE/S ONLY TO ,KEYNES' GREAT 
CONC]N = GOV]NM5TAL CONTROLS 0BO? AS ! ONLY PRACTICAL MEANS ( 
AVOID+ ! DE/RUCTION ( ! EXI/+ ECONOMIC =MS 9 !IR 5TIRETY & 
AS A CONDITION ( ! SUCCESSFUL FUNCTION+ ( 9DIVIDUAL 
9ITIATIVE40.<#f.> 

,9 AN ATTEMPT TO COPE ) GR[+ ECONOMIC DIFFICULTIES1 ECONOMI/S TURN$ 
TO MONET>Y !ORY 9 ORD] TO 9FLU5CE ! BUS9ESS CYCLE4 ,KEYNES WAS WELL 
SUIT$ TO S]VE ?IS TR5D4 ,A SPECULATOR 9 9T]NATIONAL CURR5CY1 ,KEYNES WAS 
OCCUPI$ ) MONEY QUE/IONS & MONET>Y RE=MS FROM HIS FIR/ PUBLICATION 
,9DIAN ,CURR5CY & ,F9ANCE 7#a#i#a#c71 D[N TO HIS LA/ CONTRIBUTION 
ON ! ,9T]NATIONAL ,MONET>Y ,FUND4 ,! CONTROL ( ! MONET>Y 
SY/EM HAD BECOME ESS5TIALLY A CONTROL ( CR$IT BY MEANS ( ! RATE ( 
9T]E/4 ,9 ,KEYNES' VIEW1 EXCESSIVE 9FLATION AS WELL AS EXCESSIVE 
DEFLATION - BO? CAPABLE ( DI/URB+ ! /ABILITY ( ! ECONOMY 
- C\LD BE ATTRIBUT$ TO A DISP>ITY BETWE5 SAV+S & 9VE/M5TS4 ,IF 
9VE/M5TS EXCE$$ SAV+S1 9FLATION W\LD OCCUR2 & IF ! REV]SE W]E 
TRUE1 DEFLATION W\LD SET 94 ,HE TRAC$ ! DISCREPANCY BETWE5 SAV+S & 
9VE/M5TS TO A LACK ( REGULATION ( BO?4 ,AS 9DIVIDUALS & GR\PS MADE 
!IR SEP>ATE DECISIONS ON SAV+S & 9VE/M5TS1 !RE WAS NO GU>ANTEE 
?AT !SE DECISIONS W\LD COMPLEM5T EA* O!R4 ,ECONOMIC WELL-BE+ DEP5D$1 
!N1 ON A RATE ( 9T]E/ ?AT W\LD KEEP SAV+S 9 CON=MITY ) 
9VE/M5TS & ?US /ABILIZE ! G5]AL PRICE LEVEL4 

,KEYNES HELD ?AT PRODUCTION IS LIMIT$ BY ! RATE ( 9T]E/ BECAUSE ?IS 
RATE DEF9ES ! /&>D = ! PR(ITABILITY ( 9VE/M5TS4 ,! RATE ( 
9VE/M5T DEP5DS ON 5TREPR5EURS1 :O MAKE 9VE/M5TS ACCORD+ TO !IR 
EXPECT$ PR(ITABILITY4 ,!SE 5TREPR5EURS >E SUPPOS$ TO COMP>E !IR 
PR(IT EXPECTATIONS ) ! CURR5T 9T]E/ PAID ON BORR[$ MONEY4 ,?US1 
L[]+ ! 9T]E/ RATE W\LD 9CREASE ! 9CL9ATION TO 9VE/4 ,KEYNES DID 
NOT D5Y ?AT A PROLONG$ DEPRESSION W\LD REE/ABLI% A 0PROP]0 
RELATION%IP BETWE5 PR(IT1 9T]E/ & WAGES4 ,BUT HE FELT SURE ?AT AN 
9FLATION>Y C\RSE W\LD ACCOMPLI% ! SAME RESULTS ) FEW] H>D%IPS4 ,HE 
LOOK$ UPON HIS 9FLATION>Y PROPOSALS NOT AS A CONTRA/ TO ! CLASSICAL 
DOCTR9E1 BUT AS AN ANSW] TO ! VIOLATION ( ?AT DOCTR9E :I* WAS ALREADY 
ACCOMPLI%$ ?R\< >TIFICIALLY-MA9TA9$ 9T]E/ RATES4 ,HE WAS CONV9C$ 
?AT CONTROL ( ! MONEY & CR$IT SUPPLY C\LD E/ABLI% AN EQUILIBRIUM RATE 
( 9T]E/ :I* W\LD EQUATE SAV+S & 9 VE/M5TS & CREATE ! 
PSY*OLOGICAL CONDITIONS = 0NORMAL0 CAPITAL EXPANSION4 

,!RE IS NO NE$1 = ! MOM5T1 TO FOLL[ ,KEYNES' NUM]\S' 
PROPOSALS ON H[ TO ALLEVIATE ! ECONOMIC ILLS BY MONET>Y MEANS4 ,HIS 
0ORIG9ALITY0 DID NOT LIE 9 ?IS FIELD3 H]E HE %>$ HONORS ) 
,HAWTREY1 ,H>ROD1 ,CASSEL1 ,WICKSELL1 ,FI%] & A HO/ ( LONG-=GOTT5 
0MONEY-CRANKS10 P>TICUL>LY ,PR\DHON & ,SILVIO ,GESELL4.<#g.> ,PR\DHON 5VISION$ AN 
ECONOMIC SY/EM ( 0MUTUALISM0 )\T EXPLOITATION1 TO BE A*IEV$ 
BY R5D]+ CAPITAL 9CAPABLE ( E>N+ 9T]E/4 ,HE PROPOS$ ! 
E/ABLI%M5T ( A NATIONAL BANK1 :I* W\LD GRATUIT\SLY GRANT CR$ITS TO ALL 
CALL]S 9 A SOCIETY ( 9DEP5D5T PRODUC]S & WORK]S' SYNDICATES4 
,:ILE ,PR\DHON IMAG9$ ?AT ! ABOLITION ( 9T]E/ WAS ! SURE/ WAY 
T[>D 0SOCIALISM10 ,SILVIO ,GESELL F\ND NO?+ WRONG ) ! 
0,MAN*E/] SY/EM40 ,HE WAS OPPOS$ TO 9T]E/ & R5T AS 
DETRIM5TS TO ! CONT9U\S EXPANSION ( PRODUCTION4 ,MONEY1 ACCORD+ TO 
,GESELL1 S9CE IT WAS NOT ONLY A M$IUM ( EX*ANGE BUT ALSO A /ORE ( WEAL?1 
HAD ! T5D5CY TO LEAVE ! CIRCULATION PROCESS1 !REBY CAUS+ /AGNATION 
& DECL9E4 ,IF ! HO>D+ ( MONEY C\LD BE PREV5T$1 PRODUCTION C\LD GO 
ON UN9T]RUPT$LY4 ,HE SUGGE/$ IMPOS+ A C>RY+-*>GE = MONEY4 ,TAX+ 
ALL LIQUID FUNDS W\LD MAKE ! HOLD+ ( MONEY AN EXP5SIVE AFFAIR4 ,HE 
ASSUM$ ?AT PEOPLE W\LD 9VE/ !IR MONEY 9 0REAL CAPITAL0 
RA!R ?AN PAY A PRICE = HO>D+2 & ?AT ! 9CREASE 9 9VE/M5TS 
W\LD LEAD TO AN ECONOMY ( ABUNDANCE & G5]AL WELL-BE+4 

,:ILE ,KEYNES DID NOT %>E ,PR\DHON'S UTOPIAN LONG+S1 HE WAS 9 FULL 
AGREEM5T ) ! ATTACK UPON ! PAYM5T ( 9T]E/1 & HE FAVOR$ ! 
GRADUAL 0EU?ANASIA ( ! R5TI]40 ,& ?\< HE F\ND 
,GESELL'S !ORIES RA!R IMPRACTICAL1 HE REG>D$ !M AS S\ND 9 
PR9CIPLE4 ,HE1 TOO1 ?\<T ! LAISSEZ-FAIRE DOCTR9E WRONG 9 ITS 
ASSUMPTION ?AT A SELF-ADJU/+ ME*ANISM BALANC$ ! RATE ( 9T]E/ & 
! VOLUME ( 9VE/M5T4 ,AL?\< HE APPRECIAT$ ,GESELL'S 0PIONE] 
WORK10 ,KEYNES ?\<T IT UNNECESS>Y TO APPLY IT3 A MANIPULAT$ RATE ( 
9T]E/ C\LD CONTROL 9VE/M5T WELL 5\< TO MA9TA9 ! NECESS>Y RATE ( 
CAPITAL EXPANSION4 

,9 DI/9CTION FROM ?OSE ECONOMI/S :O BELIEV$ ?AT ALL ECONOMIC PROBLEMS 
C\LD BE SOLV$ BY MONET>Y MEANS ALONE1 ,KEYNES PRES5T$ HIS IDEAS AS A 
0COMPLETE !ORY ( A MONET>Y ECONOMY0 9TEGRAT+ MONET>Y & 
VALUE !ORY4 ,HE CALL$ HIS WORK A 0,G5]AL ,!ORY ( ,EMPLOYM5T1 
,9T]E/ & ,MONEY10 BECAUSE 9 HIS OP9ION 0! PO/ULATES ( ! 
CLASSICAL !ORY >E APPLICABLE TO A SPECIAL CASE ONLY & NOT TO ! G5]AL 
CASE1 ! SITUATION :I* IT ASSUMES BE+ A LIMIT+ PO9T ( ! POSSIBLE 
POSITIONS ( EQUILIBRIUM4 ,MOREOV]1 ! *>ACT]I/ICS ( ! SPECIAL CASE 
ASSUM$ BY ! CLASSICAL !ORY HAPP5 NOT TO BE ?OSE ( ! ECONOMIC SOCIETY 
9 :I* WE ACTUALLY LIVE1 ) ! RESULT ?AT ITS TEA*+ IS MISLEAD+ & 
DISA/R\S IF WE ATTEMPT TO APPLY IT TO ! FACTS ( EXP]I5CE40.<#h.> 

,TRADITIONAL OR /&>D !ORY DID NOT ACC\NT = UNEMPLOYM5T2 UNTIL ! 
,G5]AL ,!ORY1 ,KEYNES' [N >GUM5TS OV]LOOK$ ! 
PROBLEM4 ,TO BE SURE1 HIS ,TREATISE ON ,MONEY 7#a#i#c7 ANTICIPAT$ ! 
LAT] ATTEMPT TO APPROA* ! QUE/ION ( \TPUT & EMPLOYM5T AS A :OLE4 ,BUT 
ONLY 9 ! ,G5]AL ,!ORY DOES HE S]I\SLY BEG9 TO DEAL ) 
BO? ! DI/RIBUTION & ! QUANTITY ( EMPLOYM5T1 & ) ! =CES ?AT 
DET]M9E ITS *ANGES4 

,TRADITIONAL !ORY WAS B\ND TO ! IMAG9>Y CONDITIONS ( FULL EMPLOYM5T 
BECAUSE ITS PROPON5TS FELT SURE ?AT WAGE LEVELS W\LD REACT TO ! =CES ( 
SUPPLY & DEM& & W\LD NEV] BE SO HI< = SO LONG A TIME AS TO CREATE OR 
MA9TA9 UNEMPLOYM5T4 ,!Y W]E CONV9C$ ?AT L[] WAGES W\LD 9CREASE 
EMPLOYM5T1 & !Y W]E CONFID5T ?AT UNEMPLOYM5T W\LD R$UCE WAGES4 
,KEYNES %>$ !IR CONVICTION BUT NOT !IR CONFID5CE4 ,HE F\ND ?AT A GIV5 
0PROP5SITY TO CONSUME0 & A GIV5 RATE ( 9VE/M5T DET]M9E 
BETWE5 !M A DEF9ITE LEVEL ( EMPLOYM5T CONSI/5T ) ECONOMIC 
EQUILIBRIUM4 ,AL?\< ?IS LEVEL CANNOT BE GREAT] ?AN FULL EMPLOYM5T1 IT CAN 
BE SMALL]4 ,AN EQUILIBRIUM 9CLUD+ FULL EMPLOYM5T MAY EXI/2 BUT IT W\LD BE 
A SPECIAL CASE4 ,G5]ALLY1 AN 9CREASE 9 ! LEVEL ( EMPLOYM5T NECESSITATES 
A *ANGE EI!R 9 ! PROP5SITY TO CONSUME OR 9 ! RATE ( 9VE/M5T4 

,KEYNES DID NOT QUE/ION ! ASS]TION ?AT UND] C]TA9 CONDITIONS 
UNEMPLOYM5T 9DICAT$ ! EXI/5CE ( REAL WAGES ?AT >E 9COMPATIBLE ) 
ECONOMIC EQUILIBRIUM1 & ?AT L[]+ !M W\LD 9CREASE EMPLOYM5T BY 
RAIS+ ! PR(ITABILITY ( CAPITAL & ?US ! RATE ( 9VE/M5T4 ,BUT HE 
F\ND ?AT WAGES W]E LESS FLEXIBLE ?AN HAD BE5 G5]ALLY ASSUM$4 ,WORK]S 
HAD LE>N$ TO RESI/ WAGE R$UCTIONS4 ,& AS LONG AS ! 0SOCIALI/ 
ME?OD0 ( WAGE-CUTT+ BY GOV]NM5T DECREE WAS NOT1 HE SAID1 A REALITY1 
! AVAILABLE ME?ODS ( WAGE-CUTT+ W]E NOT EFFICI5T 5\< TO SECURE 
UNI=M WAGE-R$UCTIONS = EV]Y CLASS ( LABOR4 ,HE ALSO NOTIC$ ?AT 
WORK]S' RESI/ANCE IS GREAT] TO A CUT 9 MONEY WAGES ?AN TO A L[]+ 
( REAL WAGES4 ,?IS IS TRUE1 ( C\RSE2 IF ONLY BECAUSE IT IS EASI] TO GO ON 
/RIKE ?AN RESI/ RIS+ PRICES4 ,KEYNES SAW ?AT ?IS ALL[$ = MORE SUBTLE 
WAYS ( WAGE-CUTT+ ?AN ?OSE TRADITIONALLY EMPLOY$4 ,! SUBTLE WAY WAS ALSO 
! MORE G5]AL & EFFECTIVE WAY1 HE FELT4 ,A FLEXIBLE WAGE POLICY C\LD BE 
CREAT$ BY A FLEXIBLE MONEY POLICY3 AN 9CREASE 9 ! QUANTITY ( MONEY W\LD 
RAISE PRICES & R$UCE REAL WAGES IF MONEY-WAGES REMA9$ /ATION>Y OR ROSE 
MORE SL[LY ?AN ! G5]AL PRICE LEVEL4 0,HAV+ REG>D TO HUMAN NATURE 
& \R 9/ITUTIONS10 HE WROTE1 0IT CAN ONLY BE A FOOLI% P]SON 
:O W\LD PREF] A FLEXIBLE WAGE POLICY TO A FLEXIBLE MONEY POLICY1 UNLESS HE 
CAN PO9T TO ADVANTAGES FROM ! =M] :I* >E NOT AVAILABLE FROM ! 
LATT]40.<#i.> 

,BEYOND !SE OBS]VATIONS1 H[EV]1 ,KEYNES HELD ?AT EMPLOYM5T 9 A 
DEVELOP$ CAPITALISM IS DET]M9$ NOT BY WAGE-B>GA9S BETWE5 WORK]S & 
EMPLOY]S BUT BY ! EXI/+ 0EFFECTIVE DEM&10 :I* DEP5DS ON 
! PROP5SITY TO CONSUME & ON ! RATE ( CAPITAL EXPANSION4 ,EV5 ) 
P]FECTLY FLEXIBLE WAGE-RATES1 UNEMPLOYM5T W\LD EXI/ IF !RE W]E A 
DECL9+ DEM&4 ,! RUL+ ASSUMPTION ( 0,SAY'S LAW0 ?AT 
0SUPPLY CREATES ITS [N DEM&0 IS SIMPLY NOT TRUE2 CAPITALISM IS 
NOT ! SELF-ADJU/+ SY/EM IT WAS SUPPOS$ TO BE4 ,:ILE IT IS TRUE ?AT A 
R$UCTION 9 MONEY-WAGES :I* LEAVES ! EXI/+ AGGREGATE DEM& 9TACT WILL 
9CREASE EMPLOYM5T1 ?IS WILL NOT BE ! CASE IF ! AGGREGATE DEM& 
DECL9ES4 ,FROM A 0SOCIAL0 PO9T ( VIEW1 WAGE-R$UCTIONS MAKE S5SE 
ONLY IF !Y LEAD TO AN EXPANSION ( PRODUCTION :I* 9CREASES EFFECTIVE 
DEM&4 ,& ! M>KET WILL NOT PROVIDE WAGE POLICIES TO SECURE & 5L>GE 
EFFECTIVE DEM& UNTIL FULL EMPLOYM5T IS REA*$4 ,TO ?IS 5D1 9T]F]5CES 
( A MONET>Y &1 P]HAPS1 AN EXTRA-MONET>Y *>ACT] >E NE$$4 ,! PURPOSE 
( !SE 9T]F]5CES1 H[EV]1 IS TO MAKE ! M>KET'S ECONOMIC 
EQUILIBRIUM OP]ATE UND] CONDITIONS ( FULL EMPLOYM5T4 ,SAY'S UNWORKABLE 
LAW ( ! M>KET IS TO BE MADE TO WORK BY EXTRA-M>KET MEANS4 

,ACCORD+ TO ,SAY1 ALL PEOPLE PRODUCE EI!R TO CONSUME OR TO SELL & ALL 
SELL 9 ORD] TO BUY SOME O!R COMMODITY TO USE OR TO CONSUME2 CONSEQU5TLY1 
SUPPLY & DEM& >E B\ND TO BALANCE4 ,IF !RE IS TOO MU* ( A P>TICUL> 
COMMODITY1 ITS PRICE WILL FALL2 IF !RE IS NOT 5\<1 ITS PRICE WILL RISE2 
!SE PRICE *ANGES1 T5D+ TO ECONOMIC EQUILIBRIUM1 EXCLUDE ! POSSIBILITY 
( G5]AL OV]PRODUCTION4 ,! M>KET ME*ANISM IS H]E SE5 AS A 
SELF-ADJU/+ EQUILIBRIUM ME*ANISM :I* NE$ ONLY BE LEFT ALONE TO PRODUCE 
! MO/ ECONOMICAL & RATIONAL ALLOCATION ( PRODUCTIVE RES\RCES & 
DI/RIBUTION ( COMMODITIES4 ,AS A COROLL>Y ( ! SAME DOCTR9E1 ,KEYNES SAID1 
0IT HAS BE5 SUPPOS$ ?AT ANY 9DIVIDUAL ACT ( AB/A9+ FROM 
CONSUMPTION NECESS>ILY LEADS TO1 & AM\NTS TO ! SAME ?+ AS1 CAUS+ ! 
LABOR & COMMODITIES ?US RELEAS$ FROM SUPPLY+ CONSUMPTION TO BE 9VE/$ 
9 ! PRODUCTION ( CAPITAL WEAL?40.<#a.> 

,NOT)/&+ SOME !ORETICAL 9CONSI/5CIES1 MOD]N ECONOMIC ?\<T1 
ACCORD+ TO ,KEYNES1 0IS /ILL DEEPLY /EEP$ 9 ! NOTION ?AT IF 
PEOPLE DO NOT SP5D !IR MONEY 9 ONE WAY !Y WILL SP5D IT 9 
ANO!R40.<#a#a.> 
,KEYNES ADMITT$ ! PLAUSIBILITY ( ! IDEA 0?AT ! CO/S ( \TPUT 
>E ALWAYS COV]$ 9 ! AGGREGATE BY ! SALE-PROCE$S RESULT+ FROM 
DEM&40 ,?IS IDEA MAKES IT NATURAL TO SUPPOSE 0?AT ! ACT ( AN 
9DIVIDUAL1 BY :I* HE 5RI*ES HIMSELF )\T APP>5TLY TAK+ ANY?+ 
FROM ANYONE ELSE1 MU/ ALSO 5RI* ! COMMUNITY AS A :OLE2 SO ?AT AN ACT ( 
9DIVIDUAL SAV+ 9EVITABLY LEADS TO A P>ALLEL ACT ( 9VE/M5T4 ,=1 IT IS 
9DUBITABLE ?AT ! SUM ( ! NET 9CREM5T ( ! WEAL? ( 9DIVIDUALS MU/ 
BE EXACTLY EQUAL TO ! AGGREGATE NET 9CREM5T ( ! WEAL? ( ! 
COMMUNITY40 ,BUT ,KEYNES CONCLUD$ ?AT 0?OSE :O ?9K 9 ?IS WAY 
W]E DECEIV$1 NEV]!LESS1 BY AN OPTICAL ILLUSION1 :I* MAKES TWO 
ESS5TIALLY DIFF]5T ACTIVITIES APPE> TO BE ! SAME40.<#a#b.> 

,FROM ! ASSUMPTION ?AT ! DEM& PRICE ( \TPUT AS A :OLE EQUALS ITS 
SUPPLY PRICE FOLL[ ALL ! O!R ASSUMPTIONS ( NEO-CLASSICAL EQUILIBRIUM 
!ORY1 9CLUD+ ITS !ORY ( EMPLOYM5T4 ,?IS !ORY ALL[S ONLY = 
0VOLUNT>Y0 OR 0FRICTIONAL0 UNEMPLOYM5T1 NOT = 
9VOLUNT>Y UNEMPLOYM5T4 ,KEYNES1 H[EV]1 ACKN[L$G$ ! EXI/5CE ( 
9VOLUNT>Y UNEMPLOYM5T3 HE DESCRIB$ ITS ABS5CE AS A /ATE ( 0FULL 
EMPLOYM5T40 ,IT IS NOT V]Y PLAUSIBLE1 HE WROTE1 0TO ASS]T ?AT 
UNEMPLOYM5T 9 ! ,UNIT$ ,/ATES 9 #aicb WAS DUE EI!R TO LABOR OB/9ATELY 
REFUS+ TO ACCEPT A R$UCTION ( MONEY-WAGES OR TO ITS OB/9ATELY DEM&+ A 
REAL WAGE BEYOND :AT ! PRODUCTIVITY ( ! ECONOMIC MA*9E WAS CAPABLE ( 
FURNI%+4 ,WIDE V>IATIONS >E EXP]I5C$ 9 ! VOLUME ( EMPLOYM5T )\T 
ANY APP>5T *ANGE EI!R 9 ! M9IMUM REAL DEM&S ( LABOR OR 9 ITS 
PRODUCTIVITY40.<#a#c.> 

,= ,KEYNES ! V]Y FACT ( L>GE-SCALE & PROLONG$ UNEMPLOYM5T 9DICAT$ 
?AT 0,SAY'S LAW0 IS NOT A G5]AL ECONOMIC LAW BUT HOLDS TRUE 
ONLY UND] ! SPECIAL CONDITIONS ( EQUILIBRIUM ) FULL EMPLOYM5T4 ,9 
,KEYNES' VIEW1 ! ECONOMIC SY/EM MAY BE 9 EQUILIBRIUM UND] CONDITIONS 
( LESS ?AN FULL EMPLOYM5T4 

,?AT IS TO SAY1 A GIV5 LEVEL ( EMPLOYM5T %ORT ( FULL EMPLOYM5T MAY BE 
! MO/ PR(ITABLE = ! 5TREPR5EURS4 ,NO =CE !N EXI/S )9 ! 
EQUILIBRIUM TO RAISE ! LEVEL ( EMPLOYM5T TO FULL EMPLOYM5T4 ,?IS CAN BE 
BR\<T AB\T ONLY EXT]NALLY1 BY SELECT+ \T ( ! MUTUALLY 9T]DEP5D5T 
ECONOMIC V>IABLES 0?OSE V>IABLES :I* CAN BE DELIB]ATELY CONTROLL$ 
OR MANAG$ BY C5TRAL AU?ORITY 9 ! K9D ( SY/EM 9 :I* WE ACTUALLY 
LIVE40.<#a#d.> ,= 
,KEYNES1 !SE DET]M9ABLE V>IABLES W]E ! PROP5SITY TO CONSUME & ! 
9C5TIVE TO 9VE/4 ,MANIPULATION ( !SE V>IABLES WAS TO LEAD TO A /ATE ( 
ECONOMIC EQUILIBRIUM ) FULL EMPLOYM5T4 ,ONCE ?IS WAS E/ABLI%$1 ! 
/ATIC EQUILIBRIUM ANALYSIS W\LD HOLD GOOD AGA94 ,KEYNES DID NOT QUE/ION ! 
POSSIBILITY ( SU* AN EQUILIBRIUM2 HE D\BT$ ONLY ?AT ! SY/EM W\LD 
ADJU/ ITSELF TO CREATE IT4 ,! !ORY :I* FAIL$ TO FIT ! PRACTICE WAS 
C\NT]$ BY A PRACTICE TO FIT ! !ORY4 

,KEYNES F\ND IT CONV5I5T TO SYMPA?IZE ) ! DOCTR9E 0?AT 
EV]Y?+ IS PRODUC$ BY LABOR10 BECAUSE 0MU* UNNECESS>Y 
P]PLEXITY CAN BE AVOID$ IF WE LIMIT \RSELVES /RICTLY TO ! TWO UNITS1 
MONEY & LABOR1 :5 WE >E DEAL+ ) ! BEHAVIOR ( ! ECONOMIC SY/EM 
AS A :OLE40.<#a#e.> ,! BASIC UNIT ( EMPLOYM5T 9 HIS SY/EM IS A 
WORK+-H\R ( AV]AGE PRODUCTIVITY1 AS 9 ,M>X'S SY/EM SKILL$ LABOR 
IS R$UC$ TO UNSKILL$ LABOR4 ,A WAGE-UNIT IS ! QUANTITY ( MONEY RECEIV$ 
= AN H\R ( WORK4 ,! AGGREGATES ( PRODUCTION1 9COME1 & EMPLOYM5T 
REPRES5T C]TA9 VALUES 9 T]MS ( WAGE-UNITS & ! LATT] >E ASSUM$ TO 
BE ( CON/ANT MAGNITUDE4 ,QUANTITIES ( EMPLOYM5T MEASUR$ 9 WAGE UNITS S]VE 
AS AN 9DEX = MEASUR+ ! *ANGES 9 ! ECONOMIC SY/EM4 

,EXPRESS$ 9 SIMPLE/ T]MS1 ,KEYNES' MODEL REPRES5TS A CLOS$ SY/EM 
DIVID$ 9TO TWO DEP>TM5TS ( PRODUCTION - ?AT ( CONSUMPTION GOODS 
& ?AT ( CAPITAL GOODS4 ,! TOTAL MONEY EXP5DITURES ON CONSUMPTION GOODS 
PLUS ! TOTAL EXP5DITURES ON CAPITAL GOODS CON/ITUTE TOTAL 9COME4 ,:5 ! 
AGGREGATE DEM& - ! DEM& = CONSUMPTION & CAPITAL GOODS - 
EQUALS TOTAL 9COME1 :I* IMPLIES ?AT TOTAL SAV+S EQUALS TOTAL 9VE/M5TS1 
! SY/EM IS SUPPOS$ TO BE 9 EQUILIBRIUM4 ,A DECL9E ( AGGREGATE DEM&1 
IMPLY+ A DISCREPANCY BETWE5 SAV+S & 9VE/M5TS1 R$UCES TOTAL 9COME 
& PRODUCES UNEMPLOYM5T4 ,9 ORD] TO ALT] ?IS SITUATION1 ! AGGREGATE 
DEM& MU/ BE 9CREAS$ TO A PO9T :]E TOTAL 9COME IMPLIES FULL 
EMPLOYM5T4 

,BECAUSE ,RIC>DO 0NEGLECT$ ! AGGREGATE DEM& FUNCTION10 
,KEYNES FELT HIMSELF ANTI-,RIC>DIAN & PRO-,MAL?USIAN 9 RAIS+ ! ISSUE ( 
0EFFECTIVE DEM&0 AS ! FUNDAM5TAL PR9CIPLE ( AN ECONOMY ( 
FULL EMPLOYM5T4 ,BUT :ILE 0,MAL?US WAS UNABLE TO EXPLA9 CLE>LY H[ & 
:Y EFFECTIVE DEM& C\LD BE DEFICI5T10.<#a#f.> ,KEYNES ?\<T ?AT HE HAD DISCOV]$ 
! REASON 9 ! PSY*OLOGICAL 0PROP5SITY TO CONSUME40 ,MAL?US 
SAW ?AT 9 CAPITALISM ! DEM& ( ! WORK]S C\LD NOT BE L>GE 5\< TO 
5ABLE ! CAPITALI/S TO REALIZE !IR PR(ITS4 ,& S9CE PRICES 9CLUD$ 
PR(ITS1 !Y C\LD NOT BE REALIZ$ 9 9TRA-CAPITALI/ EX*ANGE4 ,CAPITAL-LABOR 
RELATIONS CONTA9$ & CREAT$ A LACK ( DEM& :I* DE/ROY$ ! 9C5TIVE 
TO ACCUMULATE CAPITAL4 ,MAL?US CONCLUD$ ?AT ?IS DEM& MU/ COME =? FROM 
SOCIAL LAY]S O!R ?AN LABOR & CAPITAL4 ,9 ?IS WAY HE JU/IFI$ ! 
CONT9U$ EXI/5CE ( ! NONPRODUCTIVE FEUDAL CLASS3 HE DEEM$ !IR 
CONSUMPTION NECESS>Y = ! PROP] FUNCTION+ ( ! ECONOMY4 ,H[EV]1 
0! GREAT PUZZLE ( EFFECTIVE DEM& ) :I* ,MAL?US WRE/L$1 
VANI%$ FROM ECONOMIC LIT]ATURE10.<#a#g.> UNTIL RESURRECT$ BY ,KEYNES4 ,HIS !ORY MAY ?US 
BE REG>D$ AS A MOD]N V]SION1 ELABORATION1 & POSSIBLY REF9EM5T ( 
,MAL?US' !ORY ( ACCUMULATION4 

,CONSUMPTION1 = ,KEYNES1 IS ! OBVI\S 5D & OBJECT ( ALL ECONOMIC 
ACTIVITY4 ,CAPITAL1 HE WROTE1 0IS NOT A SELF-SUBSI/5T 5TITY EXI/+ 
AP>T FROM CONSUMPTION02 !RE=E 0EV]Y WEAK5+ 9 ! 
PROP5SITY TO CONSUME REG>D$ AS A P]MAN5T HABIT MU/ WEAK5 ! DEM& = 
CAPITAL AS WELL AS ! DEM& = CONSUMPTION40.<#a#h.> ,HE BELIEV$ ?AT IT IS A 
0PSY*OLOGICAL LAW0 ?AT 9DIVIDUALS T5D TO CONSUME PROGRESSIVELY 
SMALL] PORTIONS ( !IR 9COME AS ?IS 9COME 9CREASES4 ,:5 AGGREGATE REAL 
9COME IS 9CREAS$ CONSUMPTION 9CREASES TOO1 ( C\RSE1 BUT NOT SO MU* AS 
9COME4 ,IT IS ONLY 9 AN ECONOMICALLY BACKW>D SOCIETY1 ,KEYNES WROTE1 ?AT ! 
PROP5SITY TO CONSUME IS L>GE 5\< TO ASSURE ! EMPLOYM5T ( ALL H&S4 
,?IS PROP5SITY DECL9ES 9 A 0MATURE0 SOCIETY4 ,S9CE ! 
PROP5SITY TO CONSUME DECL9ES ) ! 5RI*M5T ( SOCIETY1 & S9CE 
CAPITAL =MATION IS ! 5RI*M5T ( SOCIETY1 IT FOLL[S ?AT TO FO/] ! 
5RI*M5T ( SOCIETY IS TO SUPPORT ! DECL9E ( ! PROP5SITY TO CONSUME4 
,! ACCUMULATION ( CAPITAL MU/1 !RE=E1 COME TO AN 5D 9 ! DECL9+ 
PROP5SITY TO CONSUME1 :I* IS ! KEY TO ! DECREAS+ EFFECTIVE 
DEM&4 ,KEYNES HAD SET \T TO DEFEAT ,SAY'S LAW ( ! M>KET ON ITS [N 
GR\ND1 ?AT IS1 ON ! ASSUMPTION ?AT PRODUCTION IS C>RI$ ON = ! 
B5EFIT ( CONSUMPTION4 ,& H[ C\LD HE HAVE BE5 MORE SUCCESSFUL ?AN BY 
%[+ ?AT JU/ BECAUSE ( ! 0FACT0 ?AT PRODUCTION S]VES 
CONSUMPTION1 SUPPLY DOES NOT CREATE ITS [N DEM&8 

,KEYNES VIEWS ! CONSUMPTION ( ! MASS ( ! POPULATION1 MIS]ABLE AS IT 
MAY BE COMP>$ ) POT5TIAL & EV5 ACTUAL PRODUCTION1 AS ! 
COMMUNITY'S *OS5 CONSUMPTION1 :I* EXPRESSES ITS ACTUAL PROP5SITY TO 
CONSUME4 ,YET HE ?9KS ?AT EV5 9 ! 0MATURE0 SOCIETY EFFECTIVE 
DEM& MI<T BE 9CREAS$ BY A *ANGE 9 ! PROP5SITY TO CONSUME4 ,HE ?US 
ADMITS TO A DIFF]5CE BETWE5 :AT HE CONSID]S ! COMMUNITY'S *OS5 
PROP5SITY TO CONSUME & ! ACTUALLY EXI/+ SOCIAL CONSUMPTION NE$S4 ,?IS 
ADMISSION IMPLIES1 ( C\RSE1 ?AT CONSUMPTION IS NOT ! 5D ( ECONOMIC 
ACTIVITY 9 CAPITALISM4 ,IF IT W]E !RE W\LD BE NO PROBLEM ( EFFECTIVE 
DEM&4 

,:5 EMPLOYM5T 9CREASES1 ,KEYNES WROTE1 0AGGREGATE REAL 9COME IS 
9CREAS$4 ,! PSY*OLOGY ( ! COMMUNITY IS SU* ?AT :5 AGGREGATE REAL 
9COME IS 9CREAS$ AGGREGATE CONSUMPTION IS 9CREAS$1 BUT NOT BY SO MU* AS 
9COME4 ,H5CE EMPLOY]S W\LD MAKE A LOSS IF ! :OLE ( ! 9CREAS$ 
EMPLOYM5T W]E TO BE DEVOT$ TO SATISFY+ ! 9CREAS$ DEM& = IMM$IATE 
CONSUMPTION4 ,?US1 TO JU/IFY ANY GIV5 AM\NT ( EMPLOYM5T !RE MU/ BE AN 
AM\NT ( CURR5T 9VE/M5T SUFFICI5T TO ABSORB ! EXCESS ( TOTAL \TPUT 
OV] :AT ! COMMUNITY *OOSES TO CONSUME :5 EMPLOYM5T IS AT ! GIV5 
LEVEL4 ,= UNLESS !RE IS ?IS AM\NT ( 9VE/M5T1 ! RECEIPTS ( ! 
5TREPR5EURS WILL BE LESS ?AN IS REQUIR$ TO 9DUCE !M TO (F] ! GIV5 
AM\NT ( EMPLOYM5T40.<#a#i.> ,?IS REFUTES1 ( C\RSE1 ,KEYNES' [N 
/ATEM5T ?AT CAPITAL IS 0NOT A SELF-SUBSI/5T 5TITY10 & ?AT 
0CONSUMPTION IS ! SOLE 5D ( PRODUCTION40 

,IT IS TRUE ?AT1 G5]ALLY1 B\RGEOIS ECONOMY PAID NO ATT5TION TO ! 
QUE/ION ( EFFECTIVE DEM&4 ,M>XISM DEALT ) IT1 AL?\<1 ACCORD+ TO 
,KEYNES1 ONLY 0FURTIVELY1 BEL[ ! SURFACE1 9 ! UND]WORLD0 ( 
ECONOMIC !ORY4 ,= ,M>X1 CAPITALI/ PRODUCTION IS ORI5T$ NOT T[>DS 
CONSUMPTION NE$S BUT T[>DS ! PRODUCTION ( CAPITAL4 ,CAPITALISM MU/ 
PRODUCE 9 ORD] TO CONSUME1 IT IS TRUE2 BUT 9 ORD] TO PRODUCE IT MU/ FIR/ 
SEE ! GRE5 LI<T ( PR(ITABILITY4 ,EFFECTIVE DEM& IS COMPOS$ ( A DEM& 
= CONSUMPTION GOODS & A DEM& = PRODUCTION GOODS4 ,! RELATION%IP 
BETWE5 ! TWO SIDES ( EFFECTIVE DEM& 9DICATES :E!R ! PR(ITABILITY 
( CAPITAL IS RIS+ OR FALL+4 ,CAPITAL ACCUMULATION IMPLIES A DECL9E ( 
CONSUMPTION RELATIVE TO ! FA/]-GR[+ CAPITAL4 ,9 ?IS S5SE1 CAPITAL 
=MATION DOES DIM9I% ! PROP5SITY TO CONSUME2 YET ?IS IS ONLY ANO!R WAY 
( SAY+ ?AT 9 CAPITALISM1 CAPITAL ACCUMULATES4 

0,A LACK ( EFFECTIVE DEM&0 IS JU/ ANO!R EXPRESSION = A 
LACK ( CAPITAL ACCUMULATION & IS NOT AN EXPLANATION ( IT4 ,EV5 9 
,KEYNES' VIEW1 0EMPLOYM5T CAN ONLY 9CREASE P>I PASSU 
) ! 9CREASE 9 9VE/M5TS2 UNLESS1 9DE$1 !RE IS A *ANGE 9 ! 
PROP5SITY TO CONSUME40.<#b.> ,H[EV]1 ,KEYNES MA9TA9$ ?AT = ! PRES5T 
! ONLY RATIONAL & EFFECTIVE REM$Y = UNEMPLOYM5T LAY 9 ! FUR!R 
EXPANSION ( CAPITAL4 ,! PROBLEM C\LD ALSO BE SOLV$ BY A R$UCTION ( ! 
WORK+-TIME AT ! EXP5SE ( 9VE/M5T & CONSUMPTION2 BUT1 LIKE MO/ 
NON-WORK]S1 ,KEYNES WAS SURE ?AT 0! GREAT MAJORITY ( 9DIVIDUALS 
W\LD PREF] 9CREAS$ 9COME TO 9CREAS$ LEISURE40.<#b#a.> ,/ILL1 :ILE ,KEYNES WAS V]Y MU* 
0IMPRESS$ BY ! GREAT SOCIAL ADVANTAGES ( 9CREAS+ ! /OCK ( 
CAPITAL UNTIL IT CEASES TO BE SC>CE10 HE WAS WILL+ TO 0CONC$E 
?AT ! WISE/ C\RSE IS TO ADVANCE ON BO? FRONTS AT ONCE 4 4 4TO PROMOTE 
9VE/M5TS &1 AT ! SAME TIME1 TO PROMOTE CONSUMPTION1 NOT M]ELY TO ! 
LEVEL :I*1 ) ! EXI/+ PROP5SITY TO CONSUME1 W\LD CORRESPOND TO ! 
9CREAS$ 9VE/M5T1 BUT TO A HI<] LEVEL /ILL40.<#b#b.> ,UND] CAPITALI/ CONDITIONS1 H[EV]1 
?IS 0HI<] LEVEL /ILL0 W\LD R$UCE ! PR(ITABILITY ( 
CAPITAL1 DECREASE ! LEVEL ( EMPLOYM5T1 & 9ITIATE NEW DEM&S = ! 
9CREASE ( 9VE/M5TS AS A PRECONDITION = AN 9CREASE ( CONSUMPTION4 

,TRADITIONALLY1 PR(IT HAS BE5 REG>D$ AS A REW>D RECEIV$ BY CAPITALI/S 
= !IR ACTIVITY &1 :]E !RE WAS NO SU* ACTIVITY1 AS A REW>D = !IR 
WILL+NESS TO 9VE/ RA!R ?AN CONSUME !IR 0SAV+S40 ,PR(IT 
ALSO REW>D$ !M = TAK+ 0RISKS10 OR = !IR SOCIAL 
IMPORTANCE 9 DEVELOP+ 0R\ND-AB\T ME?ODS0 ( PRODUCTION :I*1 
:ILE LEAD+ TO GREAT] PRODUCTIVITY1 IMPLY WAIT+-P]IODS = LONG-T]M 
9VE/M5TS4 ,9 EI!R CASE1 CAPITALI/S1 BY AB/A9+ FROM CONSUMPTION AT ONE 
TIME1 E>N$ ! RI<T TO CONSUME MORE AT A LAT] TIME2 UNLESS1 ( C\RSE1 !Y 
WI%$ TO AB/A9 /ILL FUR!R4 ,BUT !RE HAVE BE5 TIMES :5 CAPITALI/S 
HAVE REFUS$ TO TAKE 0RISKS02 :5 9/EAD ( 9VE/+ !IR & 
O!R PEOPLES' MONEY !Y HAVE HELD ON TO IT1 AN ATTITUDE :I* ,KEYNES 
CALLS 0LIQUIDITY-PREF]5CE40 ,BECAUSE REC5T HI/ORY HAS RECORD$ 
YE>S ( SO-CALL$ 09VE/M5T /RIKES10 ,KEYNES F\ND IT ADVISABLE 
TO ALT] ! AB/95CE !ORY ( PR(IT & 9T]E/4 ,HE SUGGE/$ ?AT PR(IT 
& 9T]E/ %\LD NO LONG] BE REG>D$ AS REW>DS = SAV+ & 9VE/+ 
MONEY BUT AS REW>DS = OV]COM+ ! DESIRE NOT TO 9VE/1 = OPPOS+ 
0LIQUIDITY-PREF]5CE0 - 9 O!R WORDS1 = ! WILL+NESS 
ON ! P>T ( ! CAPITALI/ TO REMA9 A CAPITALI/4 

,ACTUALLY1 ( C\RSE1 IT MAKES NO DIFF]5CE AT ALL :E!R ONE SAYS ?AT 
PR(ITS >E REW>DS = 9VE/+ CAPITAL OR REW>DS = OPPOS+ LIQUIDITY4 
,QU>RELS AMONG ECONOMI/S 9 ?IS REG>D REVOLVE >\ND ! QUE/ION ( :E!R 
LIQUIDITY-PREF]5CE CAUSES /AGNATION OR ! O!R WAY >\ND4 0,:5 
?+S LOOK BLACK10 WROTE ,J4 ,A4 ,S*UMPET]1 0& PEOPLE EXPECT 
NO?+ BUT LOSSES FROM ANY COMMITM5T !Y MI<T CONTEMPLATE1 !N1 ( C\RSE1 
!Y WILL REFUSE TO 9VE/ !IR CURR5T SAV+S 444 OR !Y WILL DEF] 
9VE/M5T 9 ORD] TO PR(IT BY FUR!R R$UCTIONS 9 PRICES4 ,AT ! SAME 
TIME1 SAV+S WILL NOT ONLY BE R$UC$ BUT 9CREAS$ BY ALL ?OSE :O EXPECT 
IMP5D+ LOSSES ( 9COME1 9 !IR BUS9ESS OR ?R\< UNEMPLOYM5T4 .<,BUT.> NO 
DEF5SE ( ANY 'OV]-SAV+' !ORY CAN BE BAS$ UPON IT BECAUSE IT 
OCCURS ONLY AS A CONSEQU5CE ( A DEPRESSION & H5CE CANNOT ITSELF BE 
EXPLA9$ BY IT40.<#b#c.> ,9 ,KEYNES' VIEW1 9 CONTRA/1 
0LIQUIDITY-PREF]5CE0 PREC$ES /AGNATION BECAUSE ( ! 
PSY*OLOGICALLY-DET]M9$ T5D5CY T[>DS HO>D+ :I* IS ASSOCIAT$ ) 
! DECL9+ PROP5SITY TO CONSUME4 

,ACCORD+ TO ,KEYNES1 TO /ATE HIS POSITION ONCE MORE1 AN 9CREASE ( 9COME 
9CREASES CONSUMPTION1 BUT BY LESS ?AN 9COME4 ,ON ! ASSUMPTION ?AT ALL 
9VE/M5T ULTIMATELY S]VES CONSUMPTION NE$S1 SAV+S WILL 9CREASE FA/] 
?AN 9VE/M5TS4 ,AS ?IS OCCURS1 AGGREGATE DEM& DECL9ES & ! ACTUAL 
LEVEL ( EMPLOYM5T FALLS %ORT ( ! AVAILABLE LABOR SUPPLY4 ,?IS HAPP5S 9 
A 0MATURE0 SOCIETY BECAUSE ! GREAT SIZE ( ! ALREADY-EXI/+ 
/OCK ( CAPITAL DEPRESSES ! M>G9AL EFFICI5CY 7PR(ITABILITY7 ( CAPITAL 
& ?US DEPRESSES EXPECTATIONS AB\T FUTURE CAPITAL YIELDS4 ,WEAL?-[N]S 
W\LD RA!R HOLD !IR SAV+S 9 LIQUID =M ?AN 9VE/ 9 5T]PRISES 
PROMIS+ LITTLE OR NO REW>D4 ,! %ORT-RUN EXPECTATIONS ( [N]S ( WEAL? 
>E1 9 ,KEYNES' VIEW1 BAS$ ON LONG-T]M EXPECTATIONS1 :I* >E 
NECESS>ILY GLOOMY DUE TO ! DECREAS+ SC>CITY ( CAPITAL4 ,H[ ?IS 
LONG-T]M TR5D - DECREAS+ M>G9AL EFFICI5CY ( CAPITAL - 
AFFECTS IMM$IATE 9VE/M5T DECISIONS1 ,KEYNES DOES NOT MAKE CLE>4 ,HE M]ELY 
ASS]TS ?AT CAPITALI/S SEE 9 ANY ACTUAL DECREASE ( PR(ITABILITY A /ILL 
GREAT] FUTURE DECL9E2 & ?AT ?IS D>K \TLOOK CAUSES PRES5T-DAY BUS9ESS 
TO DECL9E EV5 FA/]4 ,9 O!R WORDS1 ! %ORT-T]M \TLOOK DET]M9ES ! 
LONG-T]M \TLOOK & ! LATT] DET]M9ES BEHAVIOR 9 ! %ORT-RUN4 ,RELY+ 
ON ?IS 09SI<T10 0=ESI<T10 OR 
09/9CT10 CAPITALI/S %[ ?AT !Y PREF] A BIRD 9 ! H& TO 
ONE 9 ! BU% BY NOT RISK+ NEW 9VE/M5TS4 

,%ORT ( CLOS+ ! GAP BETWE5 9COME & CONSUMPTION1 IT FOLL[S FROM 
,KEYNES' !ORY ?AT 0EA* TIME WE ASSURE TODAY'S EQUILIBRIUM 
BY 9CREAS+ 9VE/M5TS WE >E AGGRAVAT+ ! DIFFICULTY ( SECUR+ 
EQUILIBRIUM TOMORR[40.<#b#d.> ,BUT = ! NE> FUTURE HE ?\<T !SE 
DIFFICULTIES /ILL SURM\NTABLE & SUGGE/$ A S]IES ( RE=MS DESIGN$ TO 
COMBAT 0LIQUIDITY-PREF]5CE0 & 9CREASE 0EFFECTIVE 
DEM&10 DESPITE ! DECREAS+ PROP5SITY TO CONSUME4 ,HE WAS CONFID5T 
?AT A RATE ( 9VE/M5T :I* W\LD SECURE FULL EMPLOYM5T WAS /ILL A 
POSSIBILITY4 ,EV5 0PYRAMID-BUILD+1 E>?QUAKES1 .<OR.> 444 W>S MAY S]VE 
TO 9CREASE WEAL?1 IF ! $UCATION ( \R /ATESM5 ON ! PR9CIPLES ( 
CLASSICAL ECONOMICS /&S 9 ! WAY ( ANY?+ BETT]40.<#b#e.> ,ALREADY ! ,FIR/ 
,WORLD ,W> HAD %[N ?AT 0W>-SOCIALISM UNQUE/IONABLY A*IEV$ A 
PRODUCTION ( WEAL? F> GREAT] ?AN WE KNEW 9 PEACE1 = ?\< ! GOODS 
& S]VICES DELIV]$ W]E DE/9$ = IMM$IATE & FRUITLESS EXT9CTION1 
NONE ! LESS !Y W]E WEAL?40.<#b#f.> ,ASIDE FROM ! 0ACCID5T0 ( W>1 
H[EV]1 IF EMPLOYM5T AS 0A FUNCTION ( ! EXPECT$ CONSUMPTION & ! 
EXPECT$ 9VE/M5T10 WAS NOT FULL EMPLOYM5T BECAUSE EXPECTATIONS W]E 
PESSIMI/IC1 !SE 9SUFFICI5T EXPECTATIONS C\LD BE AUGM5T$ BY AN 
OPTIMI/IC PLANN+ :I* NE$ NOT DE/ROY ! BASIC FABRIC ( CAPITALISM4 ,9 
,KEYNES' VIEW1 FULL EMPLOYM5T DID NOT HAVE TO 9VOLVE W>F>E1 CAPITAL 
DE/RUCTION1 OR SUP]FLU\S PRODUCTION1 BUT C\LD BE REALIZ$ BY WAY ( PUBLIC 
WORKS ( EI!R GREAT OR D\BTFUL UTILITY :I* W\LD 9CREASE 9COME )\T 
5L>G+ SAV+S1 & ?US KEEP ! LABOR]S BUSY4 

,! ACTUAL CRISES OR BUS9ESS-CYCLE FITT$ ONLY IMP]FECTLY 9TO 
,KEYNES' !ORY ( 0EFFECTIVE DEM&0 BAS$ ON ! DECL9+ 
0PROP5SITY TO CONSUME10 BECAUSE ! BUS9ESS-CYCLE ACCOMPANI$ ! 
MO/ IMPORTANT P]IOD ( CAPITALI/ DEVELOPM5T1 NOT JU/ ITS 
0MATURE0 /AGE4 ,IT HAD TO BE CONSID]$ L>GELY A ?+ ( ! 
PA/1 & 9 ?IS CAPACITY IT S]V$ AS A RA!R HAZY ILLU/RATION ( 
SOCIETY'S 0MATUR+0 PROCESS - A PROCESS 9 :I*1 AT 
9T]VALS1 ! DECL9+ PROP5SITY TO CONSUME C\LD /ILL BE IMMUNIZ$ BY 
PR(IT EXPECTATIONS ( CONSID]ABLE ?\< DIM9I%+ =CE & BY ! 
0WEAL?-CREAT+0 P[] ( NUM]\S W>S4 ,KEYNES (T5 EXPRESS$ 
! BELIEF ?AT CAPITALISM HAD LONG S9CE LO/ ITS ABILITY TO OV]COME 
DEPRESSIONS & ?AT /AGNATION WAS ! 0NORMAL0 /ATE ( ITS 
EXI/5CE UNLESS GOV]NM5T 9T]V5TIONS 9 ! 9VE/M5T M>KET 9T]RUPT$ 
IT4 ,SOME ( ,KEYNES' DISCIPLES DID NOT ?9K IT AN 0EXAGG]ATION TO 
SAY ?AT 9FLATION & FULL EMPLOYM5T >E ! NORMAL CONDITIONS ( A W>-TIME 
ECONOMY & ?AT DEFLATION & UNEMPLOYM5T >E ! NORMAL CONDITIONS ( A 
PEACE-TIME ECONOMY 9 ! PRES5T /AGE ( CAPITALI/ DEVELOPM5T40.<#b#g.> 

,:ATEV] ! OBJECTIVE REASONS = DEPRESSIONS1 AS LONG AS ECONOMI/S 
CONSID] !M UNASC]TA9ABLE !Y HAVE NO?+ TO WORK ON BUT ! PSY*OLOGY 
( ! CLASS !Y REPRES5T4 ,?IS PSY*OLOGY IS EXPLICABLE \T ( ! REAL 
MOVEM5TS ( CAPITAL PRODUCTION2 IT CANNOT 9 TURN EXPLA9 !SE MOVEM5TS4 
,EV5 ,KEYNES FELT AT TIMES ?AT SU* A PROC$URE WAS 9SUFFICI5T & TRI$1 TO 
GIVE HIS PSY*OLOGICAL 9T]PRETATIONS A MAT]IAL BASE4 ,QUITE 9 CONTRA/ TO 
HIS G5]AL TONE ( >GUM5TATION1 HE PO9T$ \T ?AT ! 0DURATION ( 
! SLUMP %\LD HAVE A DEF9ITE RELATION%IP TO ! L5G? ( LIFE ( DURABLE 
ASSETS & TO ! NORMAL RATE ( GR[? 9 A GIV5 EPO*40 ,AT ! \TSET 
( ! SLUMP1 HE CONT9U$1 0!RE IS PROBABLY MU* CAPITAL ( :I* ! 
M>G9AL EFFICI5CY HAS BECOME NEGLIGIBLE OR EV5 NEGATIVE4 ,BUT ! 9T]VAL ( 
TIME1 :I* WILL HAVE ELAPS$ BE=E ! %ORTAGE ( CAPITAL ?R\< USE1 DECAY 
& OBSOLESC5CE CAUSES A SUFFICI5TLY OBVI\S SC>CITY TO 9CREASE ! 
M>G9AL EFFICI5CY1 MAY BE A SOME:AT /ABLE FUNCTION ( ! AV]AGE 
DURABILITY ( CAPITAL 9 A GIV5 EPO*40.<#b#h.> 

,! REASON = ! L[ M>G9AL EFFICI5CY ( CAPITAL AT ! \TSET ( 7& 
DUR+7 ! SLUMP APPE>S TO BE ?AT AN ABUNDANCE ( CAPITAL CAUSES A LACK ( 
PR(ITABILITY4 ,IT FOLL[S FROM ?IS ?AT HA/5+ ! USE1 DECAY1 & 
OBSOLESC5CE ( CAPITAL %\LD 9CREASE ITS SC>CITY-VALUE &1 ) ?IS1 ITS 
PR(ITABILITY4 ,ONE ME?OD ( A*IEV+ CAPITAL-SC>CITY IS 
LIQUIDITY-PREF]5CE4 ,IT IMPLIES A LACK ( NEW 9VE/M5TS2 & 9 ! SLUMP 
SITUATION1 NEW 9VE/M5TS W\LD ONLY 9CREASE ! QUANTITY ( CAPITAL1 :I* 
IS ALREADY TOO L>GE TO HAVE SATISFACTORY YIELDS4 ,SO LIQUIDITY-PREF]5CE W\LD 
BE ONE WAY1 AMONG O!RS - SU* AS PYRAMID-BUILD+ & W>F>E - 
TO MA9TA9 ! SC>CITY ( CAPITAL & ?US ITS PR(ITABILITY4 ,BUT1 UNLIKE 
PYRAMID-BUILD+ & W>F>E1 LIQUIDITY-PREF]5CE MEANS UNEMPLOYM5T4 ,KEYNES 
OPPOSES IT = PRECISELY ?IS REASON4 

,9 ,KEYNES' VIEW1 CAPITAL /AGNATION EXPRESSES ! CAPITALI/ 9ABILITY 
OR UNWILL+NESS TO ACCEPT A DECREAS+ PR(ITABILITY4 ,! CRISIS RESULTS FROM 
AN 0OV]-9VE/M5T0 PROMPT$ BY 0EXPECTATIONS :I* >E 
DE/9$ TO DISAPPO9TM5T40 ,! CRISIS OCCURS NOT BECAUSE 0! 
COMMUNITY AS A :OLE HAS NO REASONABLE USE = ANY MORE 9VE/M5TS10 BUT 
BECAUSE 0D\BTS SUDD5LY >ISE CONC]N+ ! RELIABILITY ( !IR 
RESPECTIVE YIELDS10 & 0ONCE D\BT BEG9S1 IT SPREADS 
RAPIDLY40 ,DUR+ ! BOOM 0DISILLUSION FALLS UPON AN 
OV]-OPTIMI/IC & MU* OV]-B\<T M>KET10 & 0LEADS TO A %>P 
9 CREASE 9 LIQUIDITY-PREF]5CE40 ,?IS CREATES ! CRISIS4 

,! 0OV]-9VE/M5T0 EXI/S BECAUSE 9VE/M5TS HAVE BE5 
ASSOCIAT$ ) PR(IT-EXPECTATIONS ?AT PROVE TO BE HI<LY UNREALI/IC4 
0,9/EAD ( GETT+ A HOP$-= #f.01 = 9/ANCE1 9VE/M5TS MAY YIELD 
ONLY #b.0 & ?IS DISAPPO9TM5T *ANGES AN ']ROR ( OPTIMISM' 9TO 
AN ']ROR ( PESSIMISM' ) ! RESULT ?AT ! 9VE/M5TS1 :I* 
W\LD 9 FACT YIELD #b.01 9 CONDITIONS ( FULL EMPLOYM5T1 >E EXPECT$ TO YIELD 
NO?+2 & ! RESULT+ COLLAPSE ( NEW 9VE/M5TS !N LEADS TO A /ATE ( 
UNEMPLOYM5T 9 :I* 9VE/M5TS1 :I* W\LD HAVE YIELD$ #b.01 9 CONDITION ( 
FULL EMPLOYM5T1 9 FACT YIELD LESS ?AN NO?+40 ,! 5SU+ SUDD5 
COLLAPSE ( ! M>G9AL EFFICI5CY ( CAPITAL1 0DET]M9$ BY ! 
UNCONTROLLABLE & DISOB$I5T PSY*OLOGY ( ! BUS9ESS WORLD1 L[]S ! 
EXI/+ PROP5SITY TO CONSUME BY 9VOLV+ A SEV]E DECL9E 9 ! 
M>KET-VALUE ( /OCK EQUITIES40.<#b#i.> ,& ?US ! DECL9E FE$S ON ITSELF1 UNTIL IT IS 
>RE/$ BY AN 9CREASE ( ! M>G9AL EFFICI5CY ( CAPITAL )9 ! CRISIS 
SITUATION OR BY AN EXPANSION ( CAPITAL DESPITE ITS L[] M>G9AL 
EFFICI5CY4 

,TO HOPE = A RISE ( ! M>G9AL EFFICI5CY ( CAPITAL )91 ! CRISIS 
SITUATION MEANS TO AWAIT ! RETURN ( A SUFFICI5T SC>CITY ( CAPITAL4 ,9 
0MATURE0 CAPITALISM ?IS MAY WELL BE DISA/R\S3 L>GE-SCALE 
UNEMPLOYM5T ( LONG DURATION HAS SEV]E SOCIAL CON SEQU5CES4 ,TO OV]COME ! 
DEPRESSION IT IS NECESS>Y BO? TO IMPROVE ! PR(ITABILITY ( CAPITAL & TO 
EXP& PRODUCTION BEYOND ! LIMITS ( PRIVATE CAPITAL =MATION4 ,AL?\< 
,KEYNES CAME TO SEE 9T]E/-RATE MANIPULATIONS AS A POSSIBLY M9OR1 OR EV5 
TOTALLY 9EFFECTIVE 9/RUM5T = RAIS+ ! 9C5TIVE TO 9VE/1 HE HELD ON 
TO IT NEV]!LESS AS P>T ( AN EXT5SIVE ONSLAU<T ON 
0LIQUIDITY-PREF]5CE40 ,AS WE KN[1 HE FAVOR$ A R$UCTION 9 ! 
RATE ( 9T]E/ NOT ONLY BECAUSE 0IT PLAYS A PECULI> P>T 9 SETT+ A 
LIMIT TO ! LEVEL ( EMPLOYM5T1 S9CE IT SETS A /&>D TO :I* ! 
M>G9AL EFFICI5CY ( A CAPITAL-ASSET MU/ ATTA9 IF IT IS TO 
ACCRUE10.<#c.> 
BUT ALSO BECAUSE HE FAVOR$ ! ELIM9ATION ( ! 0FUNCTION-LESS 
9VE/OR0 9 PR9CIPLE1 BECAUSE 09T]E/ TODAY REW>DS NO G5U9E 
SACRIFICE40.<#c#a.> 
,AS 0MATURE0 CAPITALISM SIGNIFIES A L[] M>G9AL EFFICI5CY ( 
CAPITAL1 ! GREAT] RISK IMPLI$ 9 NEW 9VE/M5TS C\LD BE AT LEA/ P>TLY 
R$UC$ BY ELIM9AT+ ! 0L5D]'S RISK0 ALTOGE!R4 

,9 VIEW ( ! PREC>I\S /ATE ( 9VE/M5T M>KETS1 ,KEYNES CAME F9ALLY 
TO ! CONCLUSION ?AT 0! DUTY ( ORD]+ ! CURR5T VOLUME ( 
9VE/M5T CANNOT SAFELY BE LEFT 9 PRIVATE H&S40.<#c#b.> ,! GOAL ( ALL GOV]NM5TAL POLICIES 
WAS TO BE FULL EMPLOYM5T1 = 0ONLY 9 CONDITION ( FULL EMPLOYM5T IS A 
L[ PROP5SITY TO CONSUME CONDUCIVE TO ! GR[? ( CAPITAL40.<#c#c.> ,& AS IT IS ONLY 
DUR+ A BOOM ?AT CAPITALISM COMES NE>E/ TO FULL EMPLOYM5T1 ! 
0RI<T REM$Y = ! TRADE-CYCLE10 9 ,KEYNES' VIEW1 IS TO BE 
F\ND 9 0ABOLI%+ SLUMPS & ?US KEEP+ US P]MAN5TLY 9 A 
QUASI-BOOM40.<#c#d.> ,) FULL EMPLOYM5T ! CRIT]ION1 ! 
EFFECTIV5ESS ( V>I\S GOV]NM5T 9T]V5TIONS 9 ! M>KET ECONOMY C\LD 
BE TE/$ BY EXP]IM5T4 ,:ATEV] DID NOT LEAD TO FULL EMPLOYM5T WAS NOT 
5\<4 

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#f4 ,J4 ,M4 ,KEYNES1 ,! ,G5]AL ,!ORY ( ,EMPLOYM5T1 ,9T]E/ & ,MONEY1 ,NEW ,YORK1 #a#i#c#f1 P4 #c#h4 

#g4 ,S4 ,GESELL1 ,DIE ,NATURLI*E ,WIRTS*AFTSORDNUNG DUR* ,FREIL& UND ,FREIGELD1 ,B]L91 #a#i#a#f4 

#h4 ,! ,G5]AL ,!ORY P4 #c 

#i4 ,IBID41 P4 #bfh 

#a4 ,IBID41 P4 #a#i4 

#a#a4 ,IBID41 P4 #b4 

#a#b4 ,IBID41 P4 #b#a4 

#a#c4 ,IBID4 ,P #i4 

#a#d4 ,IBID41 P4 #b#d#g4 

#a#e4 ,IBID41 P4 #dc 

#a#f4 ,IBID41 P4 #cb 

#a#g4 ,IBID41 P4 #cb 

#a#h4 ,IBID41 P4 #af 

#a#i4 IBID41 P4 #bg 

#b4 IBID41 P4 #ih 

#b#a4 ,IBID41 P4 #cbf 

#b#b4 ,IBID41 P4 #cbe 

#b#c4 ,J4 ,A4 ,S*UMPET]1 ,CAPITALISM1 ,SOCIALISM & ,DEMOCRACY1 ,NEW ,YORK1 #a#i#d#g1 P4 #cie 

#b#d4 ,! ,G5]AL ,!ORY1 P4 #ae 

#b#e4 ,IBID41 P4 #a#b#i4 

#b#f4 ,M4 ,KEYNES1 ,LAISSEZ-,FAIRE & ,COMMUNISM1 ,NEW ,YORK1 #a#i#b#f1 P4 #d#h4 

#b#g4 ,D4 ,DILL>D1 ,! ,ECONOMICS ( ,JOHN ,MAYN>D ,KEYNES1 P4 #b#d#a4 

#b#h4 ,! ,G5]AL ,!ORY1 P4 #c#a#h4 

#b#i4 ,IBID41 PP4 #c#a#g1 #c#a#i1 #c#b#a1 #c#b#b4 

#c4 ,IBID41 P4 #bbb 

#c#a4 ,IBID41 P4 #c#g#f4 

#c#b4 ,IBID1 P4 #c#b4 

#c#c4 ,IBID41 P4 #c#g#c4 

#c#d4 ,IBID41 P4 #c#b#b4 

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,*RONOLOGY 3 
,M>* #b1 #bba 3 ,*APT] #a -- ,ADD$4 

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