Book contents
- Pasinetti and the Classical Keynesians
- Pasinetti and the Classical Keynesians
- Copyright page
- Contents
- Contributors
- Foreword
- Introduction
- 1 Reality (and Not Simply Abstract Rationality) as the Starting Point of Economic Theory
- 2 Economic Logic with Internal Consistency (and Not Only Formal Rigour)
- 3 Malthus and the Classics (Not Walras and the Marginalists) as the Major Inspiring Source in the History of Economic Thought
- 4 Non-ergodic (in Place of Stationary, Timeless) Economic Systems
- 5 Causality vs. Interdependence
- 6 Macroeconomics before Microeconomics
- 7 Disequilibrium and Instability (Not Equilibrium) as the Normal State of the Industrial Economies
- 8 Necessity of Finding an Appropriate Analytical Framework for Dealing with Technical Change and Economic Growth
- 9 A Strong, Deeply Felt, Social Concern
- 10 Why the Classic-Keynesian Trend May Be of Interest to a Young Scholar Today
- 11 Pasinetti’s Separation Theorem
- Author Index
- References
3 - Malthus and the Classics (Not Walras and the Marginalists) as the Major Inspiring Source in the History of Economic Thought
The Principle of Effective Demand and Classical Economics
Published online by Cambridge University Press: 17 February 2022
Book contents
- Pasinetti and the Classical Keynesians
- Pasinetti and the Classical Keynesians
- Copyright page
- Contents
- Contributors
- Foreword
- Introduction
- 1 Reality (and Not Simply Abstract Rationality) as the Starting Point of Economic Theory
- 2 Economic Logic with Internal Consistency (and Not Only Formal Rigour)
- 3 Malthus and the Classics (Not Walras and the Marginalists) as the Major Inspiring Source in the History of Economic Thought
- 4 Non-ergodic (in Place of Stationary, Timeless) Economic Systems
- 5 Causality vs. Interdependence
- 6 Macroeconomics before Microeconomics
- 7 Disequilibrium and Instability (Not Equilibrium) as the Normal State of the Industrial Economies
- 8 Necessity of Finding an Appropriate Analytical Framework for Dealing with Technical Change and Economic Growth
- 9 A Strong, Deeply Felt, Social Concern
- 10 Why the Classic-Keynesian Trend May Be of Interest to a Young Scholar Today
- 11 Pasinetti’s Separation Theorem
- Author Index
- References
Summary
Thomas Roberts Malthus is typically considered a ‘classical’ economist together with Adam Smith and David Ricardo. However, in important respects his view differed fundamentally from theirs, as Keynes emphasised in his biographical essay on Malthus. Most importantly, Malthus vehemently opposed Ricardo’s doctrine that it was impossible for effective aggregate demand to be deficient. Keynes, who also insisted on the possibility of effective demand failures, therefore considered Malthus to have been a precursor of his own view. The chapter discusses the following themes. What was the classical conception of ‘Say’s law’ and what were the reasons why Ricardo endorsed and Malthus rejected it? What were the main lines of reasoning in the ‘general glut’ controversy between Malthus and Ricardo? Was Keynes justified in considering Malthus’s doctrine to foreshadow his own doctrine, and if not, why not? What are the reasons why according to Pasinetti the classical (Ricardo-Sraffa) approach to the theory of relative prices and income distribution is compatible with Keynes’s principle of effective demand?
Keywords
- Type
- Chapter
- Information
- Pasinetti and the Classical KeynesiansNine Methodological Issues, pp. 50 - 78Publisher: Cambridge University PressPrint publication year: 2022
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