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

5 citations across 5 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.

• 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.

Verification

This reference passed the adversarial substantiation pipeline: it was checked to exist and to support the claim it is attached to. See how references were verified.

Links previously used in the corpus

Before the registry existed this work was also linked 1 other way.

• https://www.gutenberg.org/ebooks/76406 ×1

Registry ID ref:f629a9d4cad8 · see in the full table