Abstract
The neutral-money, real-exchange economy of economic orthodoxy is typically encapsulated in a theoretical model which assumes away the uncertainties and foibles of the real world by allowing full information and perfect foresight. With given resources and known wants, it would be possible to formulate plans which would produce optimal results for each individual; while for the economy as a whole a path consistent with equilibrium would be determined from the outset.
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Notes and References
See J. A. Kregel, ‘Economic Methodology in the Face of Uncertainty: The Modelling Methods of Keynes and the Post-Keynesians’, Economic Journal (June 1976) p. 213, n. 1.
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© 1989 Gordon A. Fletcher
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Fletcher, G.A. (1989). The Principle of Effective Demand. In: The Keynesian Revolution and its Critics. Keynesian Studies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-20108-2_6
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DOI: https://doi.org/10.1007/978-1-349-20108-2_6
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-49222-2
Online ISBN: 978-1-349-20108-2
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