In 1936 Keynes published the most provocative book written by any economist of his generation. The General Theory, as it is known to all economists, cut through all the Gordian Knots of pre-Keynesian discussion of the trade cycle and propounded a new approach to the determination of the level of economic activity, the problems of employment and unemployment, the causes of inflation, the strategies of budgetary policy. Arguments about the book continued until his death in 1946 and still continue today. Despite all that has been written in the subsequent years, Keynes and his book still represent the turning-point between the old economics and the new from which each generation of economists needs to take its inspiration and its point of departure towards fresh attempts to carry his work further. This new edition features a new Introduction by Paul Krugman which discusses the significance and continued relevance of The General Theory.
Table of Contents
Introduction to the 2007 Edition; P.Krugman BOOK 1: INTRODUCTION The General Theory The Postulates of the Classical Economics The Principle of Effective Demand BOOK 2: DEFINITIONS AND IDEAS The Choice of Units Expectation as Determining Output and Employment The Definition of Income, Saving and Investment The Meaning of Saving and Investment Further Considered BOOK 3: THE PROPENSITY TO CONSUME The Propensity to Consume: I. The Objective Factors The Propensity to Consume: II. The Subjective Factors The Marginal Propensity to Consume and the Multiplier BOOK 4: THE INDUCEMENT TO INVEST The Marginal Efficiency of Capital The State of Long-term Expectation The General Theory of the Rate of Interest The Classical Theory of the Rate of Interest The Psychological and Business Incentives to Liquidity Sundry Observations on the Nature of Capital The Essential Properties of Interest and Money The General Theory of Employment Re-stated BOOK 5: MONEY-WAGES AND PRICES Changes in Money-Wages The Employment Function The Theory of Prices BOOK 6: SHORT NOTES SUGGESTED BY THE GENERAL THEORY Notes on the Trade Cycle Notes on Mercantilism, The Usury Laws, Stamped Money and Theories of Under-consumption Concluding Notes on the Social Philosophy Towards which the General Theory Might Lead
JOHN MAYNARD KEYNES was born in Cambridge in 1883, son of John Neville Keynes, later registrary of the university; his mother was one of the earliest women students. Educated at Eton and King's, he passed into the Civil Service in 1906, working for three years in the India office. He returned to Cambridge as a Fellow of King's in 1909 and remained a Fellow until his death.