ABSTRACT
The 'economics of Keynes,' as distinct from 'Keynesian economics,' has passed into history.I The Treatise on Money and The General Theory have become classics and share the common fate of being known largely through secondary sources. The 50 years that have elapsed since publication of The General Theory have witnessed a phenomenal amount of empirical and theoretical work built on Keynesian foundations. The main thrust of the empirical work has been to try to verify Keynes's theoretical constructs. 2 The most important of these early empirical findings concerned the consumption function. 3
Important work has also estimated the numerical value of the multiplier and the responsiveness of investment demand to interest rates. Empirical research also attempted to establish the demand for money to test Keynes's concept of liquidity preference and its related liquidity trap hypothesis. More recently, macroeconomic models of the economy as a whole have been developed, the best known among them being the St. Louis Model of the Federal Reserve Bank of St. Louis and the larger Wharton Model of the University of Pennsylvania's Wharton School under the direction of Lawrence Klein.
