ABSTRACT
In this chapter we focus on the last step in the evolution of the Neoclassical Synthesis, namely Patinkin’s interpretation of the General Theory, which he put forward especially in his (1965) classic, Money, Interest and Prices. Patinkin too accepts the pragmatic approach to macroeconomics developed by the American Keynesians. His original contribution is to extend the application of the direct forces paradigm to Keynes’s theory by emphasizing the symmetry between the functions of aggregate demand and supply and by treating the demand for money as the demand for a normal good.
