Keynes, Uncertainty and the Global Economy
Show Less

Keynes, Uncertainty and the Global Economy

Beyond Keynes, Volume Two

Edited by Shelia C. Dow and John Hillard

The revival of interest in Keynesian economics since the late 1980s reinstates the importance of Keynes’s contribution to economic theory and policy. This is the second of two volumes in which authoritative contributions are presented by an outstanding group of international experts to celebrate Keynesian economics, and to review and further the developments of post Keynesian economics of recent years.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 3: On the issue of realism in the economics of institutions and organizations: themes from Coase and Richardson

Beyond Keynes, Volume Two

Uskali Mäki

Extract

3. Market structure, uncertainty and unemployment Malcolm Sawyer and Nina Shapiro1 I INTRODUCTION Whilst it is clear that Keynes did not use imperfect competition in his analysis in the General Theory, there have been continuing suggestions that he should have done so and/or that his analysis would have been improved by doing so. Keynes, himself, however, did not see any reason to use imperfect competition. This is summarized in his response to Ohlin who had written, ‘In this as in some other respects Keynes does not seem to me to have been radical enough in freeing himself from the conventional assumptions. When reading his book one sometimes wonders whether he never discussed imperfect competition with Mrs Robinson’. Keynes replied in some puzzlement to this, when he wrote that he had ‘not been able to make out here what you [Ohlin] are driving at. The reference to imperfect competition is very perplexing. I cannot see how on earth it comes in. Mrs. Robinson, I may mention, read my proofs without discovering any connection’ (Keynes, CW XIV).2 In contrast, a number of writers have argued that Keynes’s results require imperfect competition. Kaldor (1978), for example, argued that ‘it is difficult to conceive how production in general can be limited with unutilized capacity at the disposal of the representative firm as well as unemployed labour – unless conditions of some kind of oligopoly prevail’. The same view – essentially an echo of Kaldor’s – is expressed in Weitzman (1982), where it is contended that...

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.