Comparing and Contrasting Keynes’s Verbal, Literary, English Prose Version of His Is-Lm(lp) Model in Chapter 18 of the General Theory With His Mathematical Version of Is-Lm(lp) in Chapter 21 of the General Theory

21 Pages Posted: 3 Jun 2019

See all articles by Michael Emmett Brady

Michael Emmett Brady

California State University, Dominguez Hills

Date Written: May 11, 2019

Abstract

Keynes provided two versions of his IS-LM(LP) model in the General Theory. The first version was the verbal, English, literary, prose version contained in chapter 18 of the General Theory. This version was targeted for economists, such as Joan Robinson and Dennis Robertson, who could not grasp a mathematical presentation using a set of simultaneous linear equations due to their lack of basic mathematics. The second version was a mathematical version provided in chapter 21 in sections IV through VI. The mathematical version has been completely overlooked by all economists since 1936. A possible reason for the economics profession’s failure to grasp Keynes’s IS-LM model since 1936 is based on a group think approach that is combined with cognitive dissonance. This explanation centers on a “true believer” approach that, since Joan Robinson, Austin Robinson, and Richard Kahn actually worked with J M Keynes on the writing the General Theory, their claim, that there is no IS-LM model in the General Theory, must be true.

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

Brady, Michael Emmett, Comparing and Contrasting Keynes’s Verbal, Literary, English Prose Version of His Is-Lm(lp) Model in Chapter 18 of the General Theory With His Mathematical Version of Is-Lm(lp) in Chapter 21 of the General Theory (May 11, 2019). Available at SSRN: https://ssrn.com/abstract=3386523 or http://dx.doi.org/10.2139/ssrn.3386523

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
8
Abstract Views
152
PlumX Metrics