We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
THE FALLACIES OF LORD KEYNES' GENERAL THEORY: COMMENT.
- Authors
Tobin, James
- Abstract
The article presents a comment and reply on "General Theory of Investment," coined by Lord Keynes, by Jacques Rueff, a well-known economist. In his comment Rueff has made an attempt to expose both the fallacies of Keynesian theory and the dangers of Keynesian policy. Rueff centers his attack on Keynes' view that the supply of money is inelastic. Thus either the quantity of money in circulation is a datum and the theory of Keynes can be true or the quantity of money is fixed by the size of the cash balances, which the users of money desire to hold. The author of this article argues that the Keynesian system is not so easily shattered. The structure is not damaged even if Rueff is right and Keynes wrong concerning the determination of the supply of money. According to Rueff, the only obstacle to an increase in employment in the Keynesian system is that the associated rise in income would lead to an increased demand for cash balances. If no part of an increment in income were hoarded, then there could never be equilibrium at less than full employment.
- Subjects
KEYNESIAN economics; INVESTMENTS; EMPLOYMENT; RUEFF, Jacques; KEYNES, John Maynard, 1883-1946; ECONOMISTS
- Publication
Quarterly Journal of Economics, 1948, Vol 62, Issue 5, p763
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1883470