On W. Brian Reddaways's 1936 Review of the General Theory: How He Completely Overlooked Keynes's IS-LP(LM) Model
28 Pages Posted: 28 Sep 2017
Date Written: September 27, 2017
W. Brian Reddaway supposedly attended the December 4th,1933 lecture where Keynes first presented his IS-LP(LM) model. However, his 1936 review in the Economic Record calls into question if he was actually there for the entire time of the lecture.His review does not mention Keynes’s work in chapter 15 or Keynes’s work in chapter 21 where Keynes presented the entire IS-LP(LM) model in great detail in Part IV of chapter 21.
Keynes, in his reply, as was his usual approach, does not point out to Reddaway the important missing materials from chapter 15 and chapter 21 that Reddaway had overlooked in his review.
Reddaway’s own interpretation of an IS-LP(LM) model is inferior to both places in the General Theory where Keynes presents his model mathematically in Section IV of chapter 15 and in section IV of chapter 21. Again, Reddaway concentrates on pp. 297-298, where Keynes attacks the use of pseudo mathematical exposition in the General Theory, while completely overlooking pp.298-306 where Keynes presents his entire model, critiques and clarifies its usefulness, and makes it crystal clear that a determinate, unique equilibrium answer will be obtained if all of the facts are available.
Keywords: IS-LM, IS-LP (LM), Reddaway, Champernowne, Keynes, chapter 21, chapter 15, Keynes's views of math
JEL Classification: B10, B12, B14, B16, B20, B22
Suggested Citation: Suggested Citation