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Keynes’s Identity, Ricardian Virtue and the Partial Dichotomy

In: General Equilibrium Economics

Author

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  • Robert E. Kuenne

    (Princeton University)

Abstract

What was the contribution of Lord Keynes to the development of general equilibrium theory? It is becoming possible now, with the passage of a quarter-century, to view Keynes’s General Theory as an (important) episode in the continuous development of general neo-classical systems. From one vantage point, it is paradoxical that his work should have been accepted as the Grand Departure from its neo-classical progenitors — even though Keynes presented it in that light — since his interpretations of these systems are almost always kept visible for purposes of comparison. On the other hand, Keynes’s impact on economic policy, on the methodology and analytics of quantitative economics, and on the working economist’s ‘vision’ of reality, may be seen even today to be of that order of power rightfully termed ‘revolutionary’.

Suggested Citation

  • Robert E. Kuenne, 1992. "Keynes’s Identity, Ricardian Virtue and the Partial Dichotomy," Palgrave Macmillan Books, in: General Equilibrium Economics, chapter 19, pages 438-457, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-12752-8_20
    DOI: 10.1007/978-1-349-12752-8_20
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