J M Keynes, Chapter 21 of the General Theory, and the Textbook AD-AS Model. Why Keynes's Suggested Simplifications to His Aggregate Supply Curve Approach in Chapter 21 of the General Theory Were Overlooked

28 Pages Posted: 12 Mar 2018

See all articles by Michael Emmett Brady

Michael Emmett Brady

California State University, Dominguez Hills

Date Written: March 9, 2018

Abstract

J M Keynes discussed a number of simplifications of his D-Z model in chapter 21 of the General Theory that were comparable to the completely (infinitely) elastic range and synthesis ranges of the standard AD-AS model that is provided in Principles and Intermediate macroeconomics textbooks in (O,P) space, where P is the actual price level. Keynes was explicit that these represented simplifications from his AD-AS(D-Z) model as specified in chapter 20 of the General Theory and did not cover the range of analysis that his D-Z model was capable of covering, such as multiple equilibria, expectations, or the impact of uncertainty.

The view that Keynes did not have any formal, mathematical models in the General Theory resulted in his simplified models of his Aggregate Supply Curve being overlooked for the last 82 years.

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

Brady, Michael Emmett, J M Keynes, Chapter 21 of the General Theory, and the Textbook AD-AS Model. Why Keynes's Suggested Simplifications to His Aggregate Supply Curve Approach in Chapter 21 of the General Theory Were Overlooked (March 9, 2018). Available at SSRN: https://ssrn.com/abstract=3136916 or http://dx.doi.org/10.2139/ssrn.3136916

Michael Emmett Brady (Contact Author)

California State University, Dominguez Hills ( email )

1000 E. Victoria Street, Carson, CA
Carson, CA 90747
United States

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
27
Abstract Views
339
PlumX Metrics