ABSTRACT
This chapter discusses the greater part of the literature emanates from, and centres around, Mr. John Maynard Keynes' General Theory of Employment, Interest and Money. It is not all business-cycle theory in a strict sense, but rather general economic theory dealing with analytical tools which may be used for trade-cycle analysis as well as for other purposes. Mr. Keynes' system is conceived in terms of macro-economic concepts, inasmuch as its fundamental data consist of complex magnitudes which relate to society as a whole, such as national income, savings, investment, volume of production of producers' or consumers' goods, effective aggregate demand, price levels, etc. There is, however, one feature about Mr. Keynes' system which has given the impression to many readers that the General Theory of Employment is a dynamic theory—namely, the fact that, following the lead of Swedish writers such as G. Myrdal and E. Lindahl, it runs in terms of expectations.
