Keynes’s General Theory of Employment, Interest and Money1 is developed primarily in a closed economy context. Keynes did, however, introduce an open economy analysis when he noted that: (a) trade could modify the magnitude of the domestic employment multiplier (G.T.: 120): (b) a reduction in money-wages would worsen the terms of trade and therefore reduce real income, while it could improve the balance of trade (G.T.: 263): and (c) stimulating either domestic investment or foreign investment can increase domestic employment growth (G.T.: 335).