Edited by Steven Kates
Chapter 3: A critique of two key concepts in Keynesian textbooks
AbstractThe purpose of this chapteris to discredit Keynesian income–expenditure analysis and the concept of the multiplier embedded within it. These two key concepts of the Keynesian textbook mainstream omit variables critical to the determination of macroeconomic outcomes. The omissions are so serious that the income–expenditure circular flow is incomplete and misleading if it pretends to constitute a policy-making framework. Critically, when organized in its familiar textbook form, income–expenditure analysis has no room for either the banking system or the quantity of money. But changes in the quantity of money have major impacts on asset portfolios and expenditure decisions. These changes must be integrated in all discussions of the macroeconomic conjuncture if such discussions are to make any claim to real-world plausibility.
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.