Skip to content

The General Theory of Employment, Interest and Money¶

Keynes, J. M. (1936). The General Theory of Employment, Interest and Money.

Type: Book
Intellectual base: Review or monograph
Year: 1936
Link: https://www.files.ethz.ch/isn/125515/1366_keynestheoryofemployment.pdf
Cited from: economics_finance, mathematics

Cited by¶

7 citations across 7 artifacts.

Each citation links to the sentence it supports in the citing article.

Primes¶

Keynesian Beauty Contest
- The original analogue was a newspaper contest in which readers picked the prettiest faces, with the prize going not to the reader who picked "objectively" prettiest faces but to the one whose picks best matched the average picks across all entrants — so the rational entrant abandons their own aesthetic judgment and tries to model what the average entrant will pick, knowing the average entrant is doing the same about them.
Liquidity
- Liquidity is the ease and speed with which an asset or resource can be converted into immediately usable form (typically cash, or its domain equivalent) without significant loss of value, an idea Keynes (1936) placed at the center of macroeconomic theory through his concept of liquidity preference—the demand to hold wealth in cash-like form rather than in higher-yielding but harder-to-convert assets, and one that Hicks (1939) subsequently formalized in Value and Capital as a structural property of asset markets shaping intertemporal allocation.
  This sourceMacmillan. Foundational treatment of liquidity preference as the demand to hold wealth in cash-like form, motivating the concept of a liquidity premium and linking liquidity to interest-rate determination. Hicks, J. R. (1939). Value and Capital: An Inquiry into Some Fundamental Principles of Economic Theory. Oxford University Press. Formalizes liquidity as a structural property of asset markets and incorporates it into intertemporal general-equilibrium analysis.
Recursive Attenuating Amplification
- Even bond-coupon present-value models and population cohort-accumulation models share the convergent geometric sum with a sub-unit discount factor.
  This sourceDevelops the investment/expenditure multiplier, in which a one-shot injection re-spent at the marginal propensity to consume sums to a bounded total of 1/(1−k) times the injection.

Domain-specific¶

Paradox of Thrift
- The paradox of thrift is the macroeconomic result — stated by Keynes (1936, with antecedents in Mandeville and Hobson), though the phrase itself appears nowhere in the General Theory — that a simultaneous, economy-wide increase in the desire to save, individually rational at the household level, reduces aggregate saving in equilibrium rather than raising it, because the coordinated withdrawal of spending contracts aggregate demand, lowers income, and thereby lowers the saving that the new desire was trying to achieve
  This sourceStates the result - a general attempt to save more by reducing consumption depresses income until the attempt necessarily defeats itself (ch. 7) - and supplies the Mandeville and Hobson antecedents (ch. 23), while bearing out the sentence's own caveat: 'paradox' occurs once in the whole book, in a different phrase, so the label is not Keynes's.
  
  SupportedVerified against the source
  
  Read by an automated reader; not a human review. How support was checked
Principle of effective demand
- The principle of effective demand is Keynes's claim that the volume of employment and output is determined at the point where the aggregate demand function, representing expected proceeds, intersects the aggregate supply function, and that this point need not correspond to full employment.

Mechanisms¶

Expectation-Ladder Mapping Workshop
- Its strength is that it makes a Keynesian beauty contest discussable: Keynes's image of choosing not the prettiest face but the face one expects average opinion to expect average opinion to prefer is exactly the ladder this workshop draws — and, by capping it, refuses to chase to the top.
  This sourceUses the beauty-contest metaphor to describe choices based on what one expects average opinion to expect others to prefer.
Level-of-Analysis Shift
- At the aggregate level, the same behavior summed across all households produces the opposite result — the paradox of thrift, a classic fallacy of composition, where a property of the parts fails to hold for the whole.
  This sourceExplains that reduced consumption by individuals lowers others' incomes, so simultaneous attempts to save can produce an adverse aggregate result.

Verification¶

Does it exist? Not checked yet. This entry carries no identifier to resolve. It was extracted from the citation as written in the article, normalized, and deduplicated against the rest of the registry.

Does it back the claim? Read against the text for 1 of 7 citations: 1 supported. Each verdict is shown under its citation below, with what in the work backs the sentence.

Was it audited? Yes. A second, independent pass read the citation against the article text and recorded a verdict.

Support is checked per citation rather than per work — the same source can be cited soundly in one article and wrongly in another. Per-citation recording began recently, so a citation with no recorded check is a gap in the record rather than evidence it went unchecked.

See how references were verified.

Links previously used in the corpus¶

Before the registry existed this work was also linked 3 other ways.

Registry ID ref:92c2027b4d47 · see in the full table