On the Keynesian notion of equilibrium and dynamics

Article Abstract:

Neoclassical general equilibrium theory undermines the classical concept of dynamics based on the 'The General Theory of Employment, Interest and Money' of John Maynard Keynes. According to orthodox mainstream interpretation, classical theory considers equilibrium as a macro phenomenon, characterized by long-term capital stock adjustment. However, neoclassical theory views it as a micro concept which culminates in short-run equilibrium and defined by market clearing. Any non-orthodox interpretation thus requires a re-reading of 'The General Theory' and 'A Treatise on Money' of Keynes.

Criticism and interpretation, Keynes, John Maynard

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The transformation of the natural rate of interest into 'The General Theory's' state of long-term expectations

Article Abstract:

John Maynard Keynes 'General Theory' outlines a price-trend analysis based on the classical monetary theory that the natural rate is the stabilizing influence which ensures an equilibrium state. Analysis shows that the 'General Theory' was intended to be viewed on the basis of short-period equilibrium wherein variables cannot be treated as constants. Keynes reference to long-period employment and lon-period equlibrium are actually expressions of the short period state.

Monetary policy

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Capital, distribution and macroeconomics: 'core' beliefs and theoretical foundations

Article Abstract:

An alternative 'benchmark' model or 'microfoundations' for theorizing about macroeconomic phenomena in the case of competitive equilibria is suggested. A classical-Sraffian approach provides a means of reconciling Keynesian results with competitive outcomes.

Models, Macroeconomics

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