On Joan Robinson’s Mathematical Confusions About the Foundation for J M Keynes’s Logical Theory of the Multiplier: The Differential Calculus
12 Pages Posted: 4 Nov 2018
Date Written: October 14, 2018
Joan Robinson had no idea about what Keynes was talking about in the General Theory with respect to (a) Keynes’s Aggregate Supply Curve of Chapter 20,which is a locus of all possible, multiple equilibrium results (Full employment, underemployment, involuntary unemployment), his Liquidity Preference Theory based on his equation on p.199 of the General Theory, his Investment Multiplier, marginal propensity to consume, or income expenditure model, or the role played by Keynes’s weight of the evidence and interval valued probabilities that formed the supporting foundation for Keynes’s deployment of his concept of uncertainty in the General Theory to support his Liquidity preference theory of the rate of interest which Keynes modelled in his IS-LM(LP) model presented in its entirety in section four of Chapter 21 of the General Theory. This paper concentrates on Joan Robinson’s inability to understand the differential calculus approach that was the foundation for the Logical theory of the Multiplier.
Keywords: IS-LM, IS-LP(LM), J. Robinson, R. Kahn, Keynes, Mathematical Illiteracy, A. Robinson, Y=C I, D-Z Model
JEL Classification: B10, B12, B14, B16, B20, B22
Suggested Citation: Suggested Citation