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The Keynesian Approach

  • P. N. Junankar
Chapter
Part of the Macmillan Studies in Economics book series (MSE)

Abstract

In this chapter we will study the derivation of the investment function following from Keynes’s General Theory. It was clarified and elaborated by Lerner [38] and Witte [51]. The essence of this approach is that rising costs in the capital goods supplying industry provide a determinate macro investment function, although a micro investment function cannot be derived. To return to the format suggested in the Introduction, we have two problems: (a) what is the optimal capital stock K* and (b) how does the actual capital stock K adjust towards the optimal capital stock, i.e. can we say anything about F?

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Copyright information

© P. N. Junankar 1972

Authors and Affiliations

  • P. N. Junankar
    • 1
  1. 1.University of EssexUK

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