The disappearance of Keynes’s nascent theory of banking between the Treatise and the General Theory

In this paper we advance work which we have previously undertaken (Rymes 1998). We argue that if Keynes had rewritten his General Theory, he would have shown, first, that real classical theory was special in that it presumed automatic equilibration at full employment, and second, that classical monetary theory was special in that it had ‘nominal anchors’ determining nominal (and real) magnitudes.