ABSTRACT
In this chapter I make two points. The first is that this exercise in translation plays a crucial role in leading Hicks to his conclusion that the General Theory is nothing but a particular case of Classical theory, it being valid only in the unlikely event of the liquidity trap occurring. The second point is that this conclusion looks suspicious, largely because the IS-LM model can be called into question from two different standpoints. On the one hand, this model violates some canons of ‘pure theory’ and leads Hicks to draw conclusions which are inconsistent with the orthodox paradigm. On the other, it neglects the methodological background of the General Theory and forces Hicks to overlook vital aspects of the book, such as the principle of effective demand.
