Abstract
Keynes's primary motivation in writing "Alternative theories of the rate of interest' (1937b) and 'The "ex-ante" theory of the rate of interest' (1937c) was to counter attempts by Bertil Ohlin and others to recast his liquidity preference theory as no more than a supply and demand model of the determination of the rate of interest. this rearguard action was ultimately unsuccessful, giventhe profession's ultimate acceptance of Hick's IS-LM analysis as a summary of The General Theory. However, it also had a positive outcome, as tussling with Ohlin's arguments led Keynes to propose that investment finance was 'an additional demand for money' (Keynes 1937b: 247) to The General Theory's triumvirate of transactions, precautionary and speculative demands.
| Original language | English |
|---|---|
| Title of host publication | Keynes and Macroeconomics after 70 Years : Critical Assessments of 'The General Theory' |
| Place of Publication | U.K |
| Publisher | Edward Elgar |
| Pages | 259-278 |
| Number of pages | 20 |
| ISBN (Print) | 9781847205810 |
| Publication status | Published - 2008 |
Keywords
- saving and investment
- interest
- banks and banking
- revolving funds
- Keynes
- John Maynard
- 1883-1946