On the New Appeal of Chapter 12 of the 'General Theory' - Complicating Remarks on the Keynes-Hume Connection and the Presumed Novelty of the Analysis of Financial Markets in the 'General Theory'

Abstract

A basic presupposition of the rediscovery, in the times of the crisis, of chapter 12 of the 'General Theory' is that Keynes’s treatment of financial markets, and particularly the use of the notion of convention, represents a crucial novelty in both his economics and philosophy. The article offers complicating remarks to critically discuss this interpretation. In particular, we analyze the complex Keynes-Hume theoretical connection in the light of the Keynes-Sraffa correspondence on Hume’s 'Abstract', and emphasize the theoretical legacy of Keynes's 1910 lectures on speculation for the analysis of financial markets in the 'General Theory'.

Keywords: John Maynard Keynes, David Hume, conventions, financial markets, speculation

JEL Classification: B31, B40, D84, A12