Abstract
Aggregate demand and supply analysis is the basic paradigm presented to students in virtually all modern textbooks. This chapter aims to show that, as presented in the textbooks, aggregate demand and supply analysis has several weaknesses, the most serious of which is the use of contradictory assumptions or inconsistent modes of thought.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Asimakopulos, A. (1982). “Keynes’ Theory of Effective Demand Revisited”, Australian Economic Papers, Vol. 21, No. 38, pp. 18–36.
Barro, R. (1990). Macroeconomics, New York, John Wiley and Sons.
Branson, W. H. (1989). Macroeconomic Theory and Policy, New York, Harper and Row.
Chang, W. and Smyth, D. (1972). “Stability and Instability of IS-LM Equilibrium”, Oxford Economic Papers, Vol. 24, No. 3, pp. 372–384.
Chick, V. (1983). Macroeconomics After Keynes: A Reconsideration of the General Theory, Oxford, Philip Allan.
Darity, W., Jr. and Young, W. (1995). “IS-LM: An Inquest”, History of Political Economy, Vol. 27, No. 1, pp. 1–41.
Davidson, P. (1962). “More on the Aggregate Supply Function”, Economic Journal, Vol. 72, No. 326, pp. 452–458.
Davidson, P. and Smolensky, E. (1964). Aggregate Supply and Demand Analysis, New York, Harper and Row.
De Jong, F. J. (1954). “Supply Functions in Keynesian Economics”, Economic Journal, Vol. 64, No. 253, pp. 3–24. (See also responses to comments in Economic Journal, Vol. 65, No. 259, pp. 474–484 and Vol. 66, No. 263, pp. 482–492.)
Dillard, D. (1948). The Economics of John Maynard Keynes: The Theory of a Monetary Economy, Englewood Cliffs, N.J., Prentice Hall.
Dornbusch, R. and Fischer, S. (1987). Macroeconomics, New York, McGraw-Hill.
Gordon, R. J. (1990). Macroeconomics, Boston, Little, Brown and Co.
Hall, P. H. and Treadgold, M. L. (1982). “Aggregate Demand Curves: A Guide to Use and Abuse”, Australian Economic Papers, Vol. 21, No. 38, pp. 18–36.
Hall, R. E. and Taylor, J. B. (1986). Macroeconomics: Theory, Performance and Policy, New York, W. W. Norton.
Hicks, J. R. (1937). “Mr Keynes and the ‘Classics’: A Suggested Interpretation”, Econometrica, Vol. 5, No. 2, pp. 146–159.
Hicks, J. R. (1977). Economic Perspectives, Oxford, Clarendon Press.
Hicks, J. R. (1980). Causality in Economics, Oxford, Basil Blackwell.
Hicks, J. R. (1982). Money, Interest and Wages. Collected Essays on Economic Theory, Oxford, Basil Blackwell.
Hicks, J. R. (1984). “IS-LM: An Explanation” in The Economics of John Hicks, Oxford, Basil Blackwell.
Keynes, J. M. (1936). The General Theory of Employment, Interest and Money, London, Macmillan.
Keynes, J. M. (1973a). The Collected Writings of John Maynard Keynes, Vol. XIII, London, Macmillan.
Keynes, J. M. (1973b). The Collected Writings of John Maynard Keynes, Vol. XIV, London, Macmillan.
Leijonhufvud, A. (1974). “Keynes’ Employment Function: Comment”, History of Political Economy, Vol. 6, No. 2, pp. 164–170.
Marty, A. (1961). “A Geometrical Exposition of the Keynesian Supply Function”, Economic Journal, Vol. 71, No. 283, pp. 560–565.
Nevile, J. W. (1979). “How Voluntary is Unemployment? Two Views of the Phillips Curve”, Journal of Post Keynesian Economics, Vol. 2, No. 1, pp. 110–119.
Parkin, M. and Bade, R. (1988). Modern Macroeconomics, Oxford, Philip Allan.
Patinkin, D. (1976). Keynes’ Monetary Thought: A Study of Its Development, Durham, N. C., Duke University Press.
Roberts, D. L. (1978). “Patinkin, Keynes and Aggregate Supply and Demand Analysis”, History of Political Economy, Vol. 10, No. 4, pp. 549–576.
Robertson, D. H. (1955). “Keynes and Supply Functions”, Economic Journal, Vol. 65, No. 259, pp. 474–477. (See also his comment in Economic Journal, Vol. 66, No. 263, pp. 485–487.)
Stonier, A. W. and Hague, D. C. (1953). A Textbook of Economic Theory, London, Longmans.
Tarshis, L. (1977). “Keynes as seen by his Students in the 1930s” in D. Patinkin and J. Leith (eds.), Keynes, Cambridge and the General Theory, London, Macmillan.
Vandenborre, H. (1958). “An Integration of Employment Economics within the Keynesian Theory of Money Flows”, Oxford Economic Papers, Vol. 10, No. 2, pp. 205–219.
Weintraub, S. (1956). “A Macroeconomic Approach to the Theory of Wages”, American Economic Review, Vol. 46, No. 5, pp. 835–856.
Weintraub, S. (1957). “The Micro-Foundations of Aggregate Demand and Supply”, Economic Journal, Vol. 67, No. 267, pp. 455–470.
Weintraub, S. (1958). An Approach to the Theory of Income Distribution, Philadelphia, Pa., Chilton.
Wells, P. (1962). “Aggregate Supply and Demand: An Explanation of Chapter III of the General Theory”, Canadian Journal of Economics and Political Science, Vol. 28, No. 4, pp. 585“590.
Copyright information
© 2016 Joseph Halevi, G. C. Harcourt, Peter Kriesler and J. W. Nevile
About this chapter
Cite this chapter
Nevile, J.W., Rao, B.B. (2016). The Use and Abuse of Aggregate Demand and Supply Functions. In: Post-Keynesian Essays from Down Under Volume IV: Essays on Theory. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-47529-9_8
Download citation
DOI: https://doi.org/10.1057/978-1-137-47529-9_8
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-137-47528-2
Online ISBN: 978-1-137-47529-9
eBook Packages: Economics and FinanceEconomics and Finance (R0)