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Keynesian Economics and the Stockholm School. A Comment on Don Patinkin’s Paper

In: The Theoretical Contributions of Knut Wicksell

Author

Listed:
  • Bertil Ohlin

Abstract

Professor Don Patinkin expresses the view that the real content of Keynes’ theory of effective demand in the General Theory was his development of a theory for underemployment equilibrium and its application to explain the relationship between fluctuations in investment and changes in employment. The mechanism relating the two was the change in the total volume of output brought about by a variation in investment, which subsequently gave rise to a change in the volume of savings, whereby the latter came to equal the size of investment.

Suggested Citation

  • Bertil Ohlin, 1979. "Keynesian Economics and the Stockholm School. A Comment on Don Patinkin’s Paper," Palgrave Macmillan Books, in: Steinar Strøm & Björn Thalberg (ed.), The Theoretical Contributions of Knut Wicksell, pages 16-19, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-04207-4_3
    DOI: 10.1007/978-1-349-04207-4_3
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