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Keynes and the Post-Keynesians: Arbitary Expectations

  • Chidem Kurdas

Abstract

Chapters 11 and 12 of the General Theory contain two different views of investment. Keynes presented the two chapters as complementary, but others have interpreted them as antithetical:

Chapter 11 shows us the arithmetic of the marginal efficiency of capital and its relation with interest rates, a matter for actuaries and slide-rules. Chapter 12 reveals the hollowness of all this. The material for the slide-rules is absent, or arbitrary. Investment is an irrational activity, or a non-rational one. Surmise and assumption about what is happening or about to happen are themselves the source of these happenings, men make history in seeking to apprehend it.

(Shackle 1983: 130. First published 1967)

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Copyright information

© Chidem Kurdas 1994

Authors and Affiliations

  • Chidem Kurdas
    • 1
  1. 1.Pennsylvania State UniversityUSA

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