|3||01||BOOK I INTRODUCTION|
|3||0101||Chapter 1 THE GENERAL THEORY|
|4||0102||Chapter 2 THE POSTULATES OF THE CLASSICAL ECONOMICS|
|4||010201||I. The wage is equal to the marginal product of labour|
|4||010202||II. The utility of the wage when a given volume of labour is employed is equal to the marginal disutility of that amount of employment.|
|16||0103||Chapter 3 THE PRINCIPLE OF EFFECTIVE DEMAND|
|24||02||BOOK II DEFINITIONS AND IDEAS|
|24||0201||Chapter 4 THE CHOICE OF UNITS|
|29||0202||Chapter 5 EXPECTATION AS DETERMINING OUTPUT AND EMPLOYMENT|
|34||0203||Chapter 6 THE DEFINITION OF INCOME, SAVING AND INVESTMENT|
|40||020302||II. Saving and Investment|
|43||0204||APPENDIX ON USER COST|
|50||0205||Chapter 7 THE MEANING OF SAVING AND INVESTMENT FURTHER CONSIDERED|
|52||020501||III We come next to the divergences between Saving and Investment|
|54||020502||V The prevalence of the idea that saving and investment, is to be explained, I think, by an optical illusion due to regarding an individual depositor’s relation to his bank as being a one-sided transaction, instead of seeing it as the two-sided transaction which it actually is.|
|58||03||BOOK III THE PROPENSITY TO CONSUME|
|58||0301||Chapter 8 THE PROPENSITY TO CONSUME:|
|58||030101||I. The Objective Factors|
|60||030102||II The principal objective factors which influence the propensity to consume|
|60||03010201||(1) A change in the wage-unit.|
|60||03010202||(2) A change in the difference between income and net income.|
|61||03010203||(3) Windfall changes in capital-values not allowed for in calculating net income.|
|61||03010204||(4) Changes in the rate of time-discounting,|
|62||03010205||(5) Changes in fiscal policy.|
|63||03010206||(6) Changes in expectations of the relation between the present and the future level of income.|
|64||030103||III Granted, then, that the propensity to consume is a fairly stable function|
|65||03010301||IV (net income being equal to consumption plus net investment).|
|75||0302||Chapter 10 THE MARGINAL PROPENSITY TO CONSUME AND THE MULTIPLIER|
|88||04||BOOK IV THE INDUCEMENT TO INVEST|
|88||0401||Chapter 11 THE MARGINAL EFFICIENCY OF CAPITAL|
|90||040101||II How is the above definition of the marginal efficiency of capital related to common usage?|
|96||0402||Chapter 12 THE STATE OF LONG-TERM EXPECTATION|
|98||040201||III The outstanding fact is the extreme precariousness of the basis of knowledge on which our estimates of prospective yield have to be made.|
|100||040202||IV In practice we have tacitly agreed, as a rule, to fall back on what is, in truth, a convention.|
|100||040203||V Some of the factors which accentuate this precariousness may be briefly mentioned.|
|101||04020301||(1) As a result of the gradual increase in the proportion of the equity in the community’s aggregate capital investment|
|101||04020302||(2) Day-to-day fluctuations in the profits of existing investments, which are obviously of an ephemeral and non-significant character,|
|101||04020303||(3) A conventional valuation which is established as the outcome of the mass psychology of a large number of ignorant individuals is liable to change violently as the result of a sudden fluctuation of opinion|
|102||04020304||(4) But there is one feature in particular which deserves our attention.|
|104||04020305||(5) So far we have had chiefly in mind the state of confidence of the speculator or speculative investor himself and may have seemed to be tacitly assuming that, if he himself is satisfied with the prospects, he has unlimited command over money|
|109||0403||Chapter 13 THE GENERAL THEORY OF THE RATE OF INTEREST|
|123||0404||Appendix to Chapter 14 APPENDIX ON THE RATE OF INTEREST IN MARSHALL’S “PRINCIPLES OF ECONOMICS”, RICARDO’S “PRINCIPLES OF POLITICAL ECONOMY”, AND ELSEWHERE|
|129||0405||Chapter 15 THE PSYCHOLOGICAL AND BUSINESS INCENTIVES TO LIQUIDITY|
|130||04050006||(i) The Income-motive.|
|130||04050007||(ii) The Business-motive.|
|130||04050008||(iii) The Precautionary-motive.|
|130||04050009||(iv) There remains the Speculative-motive.|
|137||040501||III We can sum up the above in the proposition that in any given state of expectation there is in the minds of the public a certain potentiality towards holding cash beyond what is required by the transactions-motive or the precautionary-motive, which will realise itself in actual cash-holdings in a degree which depends on the terms on which the monetary authority is willing to create cash.|
|141||0406||Chapter 16 SUNDRY OBSERVATIONS ON THE NATURE OF CAPITAL|
|150||0407||Chapter 17 THE ESSENTIAL PROPERTIES OF INTEREST AND MONEY|
|152||040701||II Let us consider what the various commodity-rates of interest over a period of (say) a year|
|155||040702||III In attributing, therefore, a peculiar significance to the money-rate of interest,|
|163||040703||V As a footnote to the above, it may be worth emphasising what has been already stated above, namely, that “liquidity” and “carrying-costs” are both a matter of degree;|
|165||040704||VI In my Treatise on Money I defined what purported to be a unique rate of interest,|
|167||0408||Chapter 18 THE GENERAL THEORY OF EMPLOYMENT RESTATED|
|174||05||BOOK V MONEY-WAGES AND PRICES|
|174||0501||Chapter 19 CHANGES IN MONEY-WAGES|
|193||0502||Chapter 20 THE EMPLOYMENT FUNCTION|
|201||0503||Chapter 21 THE THEORY OF PRICES|
|214||06||BOOK VI SHORT NOTES SUGGESTED BY THE GENERAL THEORY|
|215||0601||Chapter 22 NOTES ON THE TRADE CYCLE|
|228||0602||Chapter 23 NOTES ON MERCANTILISM, THE USURY LAWS, STAMPED MONEY AND THEORIES OF UNDER-CONSUMPTION|
|235||06020001||(1) Mercantilist thought never supposed that there was a self-adjusting tendency by which the rate of interest would be established at the appropriate level. On the contrary they were emphatic that an unduly high rate of interest was the main obstacle to the growth of wealth; and they were even aware that the rate of interest depended on liquidity-preference and the quantity of money.|
|238||06020002||(2) The mercantilists were aware of the fallacy of cheapness and the danger that excessive competition may turn the terms of trade against a country.|
|239||06020003||(3) The mercantilists were the originals of “the fear of goods” and the scarcity of money as causes of unemployment which the classicals were to denounce two centuries later as an absurdity:|
|240||06020004||(4) The mercantilists were under no illusions as to the nationalistic character of their policies and their tendency to promote war. It was national advantage and relative strength at which they were admittedly aiming.|
|257||0603||Chapter 24 CONCLUDING NOTES ON THE SOCIAL PHILOSOPHY TOWARDS WHICH THE GENERAL THEORY MIGHT LEAD|
eng Corner stone of modern macroeconomics
Today this masterpiece of John Maynard Keynes hits the head of the nail as accurately as it did 80 years ago despite of so complete changes both in the pane, nail and hammer. But the changes are valid only in the appearance. The essential forces behind the economic process remain the same: supply and demand. How these universal elements get reconciled? That is and was the question.
Keynes takes the bold grip and proposes not less than a General Theory as the solution of this big question. So pretending in Economics the positon of Einstein with his Theory of Relativity. Not without comparable success. Einstein's Relativity and Keynes's General are perhaps not the very ultimate truths, but they are at least not easily repudiable hypotheses, anyway.
The crux of the General Theory is unemployment, the moment of friction between supply and demand. Easily defined, but everything else, but easily suppressed. In his General Theory Keynes concentrates above all to the role of interest and investment as the tools of restoring full employment. Despite of these factors being mentioned in the heading of the
General theory and being discussed extensively in the text with rich and remarkably polite references to contemporary and recent colleagues they are not considered the main levers to full employment.
The central role is played by the propensity to consume. This is made clear in several passages of the text.
"It is no new thing, however, to ascribe the evils of unemployment to the insuffidency of the other constituent, namely, the insufficiency of the propensity to consume."
"(Mandeville concludes:) The great art to make a nation happy, and what we call flourishing, consists in giving everybody an opportunity of being employed; which to compass, let a Government's first care be to promote as great a variety of Manufacures, Arts and holdings of money..,"
"Thus, since the expectation of consumption is the only raison d'être of employment, there should be nothing paradoxical in the conclusion that a diminished propensity to consume has cet.par. a depressing effect on employment."
And further, referring to the other giant of the field: "Adam Smith has stated that capitals are increased by parsimony, that every frugal man is a public benefactor, and that the increase of wealth depends upon the balance of produce above consumption."
We are thus brought to the conclusion that the basis on which all economic teaching since Adam Smith has stood, viz. that the quantity annually produced is determined by the aggregates of Natural Agents, Capital, and Labour available, is erroneous, and that, on the contrary, the quantity produced, while it can never exceed the limits imposed by these aggregates, may be, and actually is, reduced far below this maximum by the check that undue saving and the consequent accumulation of over-supply exerts on production; i.e. that in the normal state of modern industrial Communities, consumption limits production and not production consumption. Finally he notices the bearing of his theory on the validity of the orthodox Free Trade arguments: "We also note that the charge of commercial imbecility, so freely launched by orthodox economists against our American cousins and other Protectionist Communities, can no longer be maintained by any of the Free Trade arguments hitherto adduced, since all these are based on the assumption that over-supply is impossible."
His most succulent and most relevant remarks from the point of view of our time Keynes presents in the last chapter of his book when discussing business cycles and international trade. - Five stars most respectfully.
Keynes, John Maynard (2014-08-28). The General Theory of Employment, Interest, and Money. David Rehak. Kindle Edition.