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Just for the sake of actually citing Keynes, I have called this book the General Theory of Employment, Interest and Money , placing the emphasis on the prefix general ... I shall argue that the postulates of the classical theory are applicable to a special case only and not to the general case, the situation which it assumes being a limiting point of
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Dave, Right, but he believed that economies secularly move towards underemployment equilibria. That's the point of my post. In other words, to Keynes full employment is the "special case" theory, and his theory of macro market failure is the "general" theory. He believed underemployment is endemic to the market system, such that
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Definitely not the "control of consumption" (whatever that term means*). This is what the book is about. Edit: * If it means that Keynes advocated stimulating consumption, then it's true (although it's not what the "whole book is about"). If it means consumption control in the stricter sense of planned allocation of consumers'
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Keynes advocates for the "socialization of investment" because he perceives there to be a macro-scale market failure -- that some savings won't be invested, because expected revenue is below costs of production and borrowing costs. This can happen, according to Keynes, if consumption is too low ( present private investment, he (erroneously
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[quote]Coase I am sort of familiar with. he is an odd type of apologist (market failures can be avoided when/if the state decides on property rights).[/quote] This is not Coase's argument. Coase's argument is that when transaction costs are high, externalities can't be solved through bargaining. Instead, those involved use the legal system
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The only effective barrier to entry, even withing specific territories, is the use of violence. Modern states can find it profitable to use violence because they can extract society's resources to pay for the costs. If we're talking about a society that has reached the point of something like personal defense agencies, it's safe to assume
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Fakename, Consider the role of prices. The ex post role of prices, profit and loss, is signalling, where losses imply overinvestment and profits imply underinvestment. The ex ante role of prices is to help individuals allocate their means towards their preferred ends. In other words, prices help coordinate economic activity. Changing these prices in
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Pluralistic governance is usually preceded by changes in the distribution of power. Pluralistic political institutions, such as democracy, would otherwise fail much sooner (as they often do, when they aren't preceded by changes in the distribution of power). Anarchic institutions will require this kind of continued re-distribution, a lot of which
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Here's a direct link to a .zip file I uploaded with some of Shackle's article's: www.economicthought.net/shackle.zip .
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Student is right. And, in fact, a lot of the complexity mathematics used now in economics was first applied to biology. Edit: And math isn't just for exact calculation. You rarely see "exact calculation" in any economics paper. Math is used to model logical relationships.