Abstract
According to Keynes, macroeconomics is ‘the theory of output and employment as a whole1 which is inevitably connected to ‘the complete theory of a monetary economy’.2 Because of its function as a store of value, money, which is ‘a link between the present and the future’,3 is inextricably tied to TIME. This continuity in time, which motivates monetary behaviour, makes it possible to satisfactorily integrate the concept of time into macroeconomics.
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Notes
Keynes, J. M. The General Theory of Employment, Interest and Money (Macmillan, London, 1973). p. 293.
Dornbusch, R., Open Economy Macroeconomics (Basic Books, New York, 1980).
Kindelberger, C. P. and Lindert, P. H., International Economics, 6th edn (Richard D. Irwin, Illinois, 1978) p. 7.
Dornbusch, R. and Fischer, S., Macroeconomics, 2nd edn (McGraw-Hill, New York, 1981) p. 626.
Dupriez, L. H., La philosophie des conjonctures économiques (Nauwelaerts, Louvain, 1959) p. 286.
It is important to stress that the multiplier is an economic phenomenon. Its usual presentation in textbooks as a purely mechanical phenomenon reduces the analysis to a tautology, devoid of economic significance (see G. Ackley, Macroeconomic Theory Macmillan, New York, 1969; in particular the section entitled ‘Tautological versus Meaningful Multipliers’, pp. 309ff). The reduction of Keynes’s macroeconomic theory to a kind of ‘fluid mechanics’ robs his theory of employment of much of its substance.
See Machlup, E., International Trade and the National Income Multiplier (Blakiston, Philadelphia, 1943).
Triffin, R., ‘The evolution of the international monetary system: historical reappraisal and future perspectives’, Princeton Studies, 12 (1964) pp. 3–4.
Barrère, A., ‘Déséquilibres économiques et contre-révolution keynésienne’, Keynes: seconde lecture (Economica, Paris, 1979) p. 3.
Cohen, B. J., Organizing the World’s Money: The Political Economy of International Monetary Relations (Basic Books, New York, 1977) pp. 15, 40.
Leontief, W., ‘Postulates: Keynes’ General Theory and the Classicists’, in S. E. Harris (ed.) The New Economics (Dennis Dobson, London, 1947) p. 232.
For an example, see Henin, P. Y., Macrodynamique: fluctuations et croissance, 2nd edn (Economica, Paris, 1981) pp. 8–9.
Ohlin, B., Interregional and International Trade (Harvard UP, Cambridge, Mass., 1933).
Dupriez, L. H., La monnaie dans l’économie (Cujas, Paris, 1976) p. 235.
This section is largely based on L. H. Dupriez’s work in La monnaie dans l’économie (Cujas, Paris, 1976), section III: ‘La monnaie dans l’espace.’ 39. Ricardo, D., The Principles of Political Economy and Taxation (Dent, Everyman’s Library, London, 1973) pp. 82–3.
Jeanneney, J. M., Pour un nouveau protectionnisme (Seuil, Paris, 1978).
Rousseaux, P., Economie politique générale (Duculot, Gembloux, Belgium, 1971) p. 452.
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© 1990 Association pour le Développement des Etudes Keynésiennes
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Mandy, P. (1990). From National Macroeconomics to World Macroeconomics: A Contribution to the Macroeconomics of Space. In: Barrère, A. (eds) Keynesian Economic Policies. Keynesian Studies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-08906-2_5
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