Keynes and the Post-Keynesians: Arbitary Expectations

  • Chidem Kurdas


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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