ABSTRACT
It is generally known, and Keynes himself was certainly not hesitant in recognising, that L@=dJKL>MDD K;9D=9HHDA;9LAGFG>@AKGeneral Theory@9<L9C=FHD9;=AF"=JE9FQO=DD :=>GJ=L@=:GGCO9K9;LM9DDQHM:DAK@=< /@AKAKFGLKMJHJAKAF?KAF;=&=QF=KcAFeM=F;=AF "=JE9FQ@9<:==FKA?FAd;9FL=N=JKAF;=@=OJGL=The Economic Consequences of the Peace.$F9<<ALAGF"=JE9F=;GFGEA;HGDA;Q>GJJ=;GN=JQ<MJAF?L@=;JM;A9DQ=9JK ^ @9<:==FK@9H=<AF9&=QF=KA9FEGMD<9DEGKLKAF?D= @9F<=<DQ:QGF=G>L@=>=O"=JE9F b&=QF=KA9FKc2AD@=DE'9ML=F:9;@ ^ 9<AKLAF?MAK@=<=;GFGEAKLO@GOGJC=< AF L@= (AFAKLJQ G> ;GFGEA;K 2@9L AK HMRRDAF? L@GM?@ AK L@= JGD= G> L@= "=JE9F academic community vis-à-visL@=K==;GFGEA;HGDA;A=K 2@=F&=QF=KAFL@=HJ=>9;=LG L@="=JE9F=<ALAGFG>The General Theory21$$PPNA9KC=<O@=L@=J@=OGMD<:= 9:D= LG ;GFNAF;= "=JE9F =;GFGEAKLKL@9L>GJE9D 9F9DQLA; E=L@G<K;GMD< ;GFKLALML= 9F AEHGJL9FL ;GFLJA:MLAGF LG AFL=JHJ=LAF? ;GFL=EHGJ9JQ @AKLGJQ 9F< L@= >GJE9LAGF G> =;GFGEA;HGDA;Q@=@9<EGJ=L@9FGF=?GG<J=9KGFLG:=K;=HLA;9D /@=D=9<AF?"=JE9F 9;9<=EA; =;GFGEAKLK OAL@ 9 >=O FGL9:D= =P;=HLAGFK @9< NA?GJGMKDQ GHHGK=< L@= <=d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dDDAF? .;@EGDD=JcK HJG?J9EE= 9F< AF;GJHGJ9LAF?AFLGAL9KLJGF?<GK=G>L@=(9JPA9FD=?9;Q@=LJA=<LG9<N9F;=KQKL=E9LA; @AKLGJA;9DL@=GJA=KAF=;GFGEA;K.;@MEH=L=J $F@AKLAE=.GE:9JLcK;GFLJA:MLAGFK =FBGQ=<9OGJD<OA<=9HHJ=;A9LAGF9F<L@=QHJGN=<?GD<EAF=K>GJ@AKLGJA;9DK;@GD9JK@AH )MKK:9ME &JMEE= ML>JGELG<9QcKN9FL9?=HGAFL@AKLGJA;AKEL=F<KLG := J=?9J<=< 9K 9 KL=JAD= ;@9HL=J AF L@= @AKLGJQ G> =;GFGEA;K O@AD= .GE:9JL KLJ=KK=< bN=JKL=@=FcMF<=JKL9F<AF? GN=JIM9FLAd9:D= 9F9DQKAK @AKE=L@G<GDG?A;9D 9FLAL@=KAK AF 9E:JA<?= HJ=N9AD=< H=J@9HK :=;9MK= L@GK= L@=GJA=K O=J= EGJ= =9KADQ HJ=K=FL=< AF IM9FLAd9:D=L=JEK >L=J9DDL@=JAK=G>&=QF=KA9FAKE;GAF;A<=KOAL@L@==E=J?=F;=G> EG<=JF=;GFGE=LJA;K 2
/@=9AEG>L@AK;@9HL=JAKLG=F@9F;=GMJMF<=JKL9F<AF?G>L@=JAK=G>&=QF=KA9FAKE /@AKAK G>;GMJK=FGLL@=dJKL9LL=EHL /@=J=9J=LOGJ=9KGFKO@Q$>==DBMKLAd=<AF9<<AF?LGL@=J9L@=J O=DD KLG;C=<DA:J9JQGFL@=K9E=KM:B=;L !AJKLL@=J=AKFG9;;=HL=<L@=GJQL@9L;GMD<9;;GMFL>GJ L@=MFHJ=;=<=FL=<LJ9FK>GJE9LAGFG>=;GFGEA;KL@9L@9KKGE=LAE=K:==F;9DD=<L@=b&=QF=KA9F -=NGDMLAGFc .=;GF<DQ$L9C=9F9HHJG9;@L@9LAK<A>>=J=FL>JGE9DDL@=GL@=JKL@9L$CFGO (Q 9HHJG9;@ KL9JLK >JGE L@= 9KKMEHLAGF L@9L The General Theory was not an
9;@A=N=E=FLKGGMLKL9F<AF?L@9LALKdF9D9;;=HL9F;=O9K9>GJ=?GF=;GF;DMKAGFO@=FAL9HH=9J=<
in 1936. But what were the alternatives? This simple question does not, however, have a KLJ9A?@L>GJO9J<9FKO=J /@=J=9J=LOGJ=9KGFK>GJL@AK<A>d;MDLQ *FL@=GF=@9F<L@=J=AKFG MF<AKHML=<AFL=JHJ=L9LAGFG>&=QF=KcGeneral Theory. This means that it is almost impossible =N=F9EGF?9KE9DD?JGMHG>=;GFGEAKLKLG=KL9:DAK@9?J==E=FL9KLGO@9LL@=KAF?MD9J ;GFLJA:MLAGF G> The General Theory @9K :==F *F L@= GL@=J @9F<&=QF=KA9FAKE 9K 9 H@=FGE=FGF<AKLAF;L>JGEL@=K;A=FLAd;;GFL=FLG>The General Theory did not originate with the HM:DA;9LAGFG>&=QF=KcEGKLAEHGJL9FL:GGC KLM<QG>L@=GJA?AFKG>&=QF=KA9FAKEEMKL 9<<J=KK :GL@ AKKM=K :ML K=H9J9L=DQ #=F;= AF GJ<=J LG MF<=JKL9F< L@= &=QF=KA9F LJ9FK>GJE9LAGFG>=;GFGEA;KALAKAEHGJL9FLLG;GFKA<=JL@=AFL=J<=H=F<=F;=G>L@=K= K=H9J9L==D=E=FLKG>O@9L$@GH=HJGNA<=K9K9LAK>9;LGJQ=PHD9F9LAGF L@=;GFL=F<AF? H9J9<A?EKAF=;GFGEA;K9F<L@=<=?J==LGO@A;@L@=Q;GMD<:=E9<=;GEH9LA:D=OAL@GF= 9FGL@=JL@==PA?=F;A=KG>=;GFGEA;HGDA;Q9F<L@=HJGH9?9LAGFG>&=QF=KcL@=GJ=LA;9D ;GFLJA:MLAGFKG>O@A;@The General TheoryAK:MLGF==D=E=FL9F<L@=L@=GJ=LA;9D<=N=DGHE=FLKL@9L;GF;MJJ=<OAL@9F<:MADLGF&=QF=Kc=;GFGEA;K /@=L9KCG><AK=FL9F?DAF?&=QF=Kc =;GFGEA;K9F<&=QF=KA9FAKE;9FFGL:=K9A<LG:=9DA?@LGF= MLALAK;GFKA<=J9:DQ>9;ADAL9L=<A>O=?=G?J9H@A;9DDQJ=EGN=GMJ9F9DQKAKG>L@=JGGLKG>&=QF=KA9FAKE9O9Q>JGE 9E:JA<?= /@AKAKFGLGFDQJ=IMAJ=<:QL@=@AKLGJA;9DK=IM=F;=G>=N=FLK9KE=FLAGF=<AFL@= AFLJG<M;LGJQH9J9?J9H@ALAK9DKG9O9QG>>G;MKAF?9LL=FLAGFGF9DL=JF9LAN=<=N=DGHE=FLK Q;GF;=FLJ9LAF?GF L@= JAK=G>&=QF=KA9FAKE AF"=JE9FQGF=@GH=K LGG:L9AF9>MDD=J MF<=JKL9F<AF?G>:GL@L@=:=F=dLK9F<L@=;GKLKG>L@=&=QF=KA9FLJ9FK>GJE9LAGFG>=;GFGEA;K /@=HJ=K=FLOGJCE9Q:=K==F9K9HJ=H9J9LGJQKL=HLGO9J<K9EGJ=HJ=;AK=
MF<=JKL9F<AF?G>L@=E=L@G<GDG?A;9D:9KAKG>&=QF=KA9FAKEAF;DM<AF?L@=J=9KGFK>GJALK 9KLGFAK@AF? KM;;=KK /@=9J?ME=FLOADD:=HJ=K=FL=<9K >GDDGOK !AJKL $ K@9DD LJQ LG<=- L=JEAF=O@9LE9<=&=QF=Kc=;GFGEA;KKGHJ= =EAF=FL /@AKAK9HJG:D=ELGO@A;@GF +9LAFCAF@9K<=NGL=<9DEGKL9 DA>=LAE=G>9LL=FLAGFEGKL J=;=FLDQHM:DAK@=< AF9 :GGC D=F?L@9;;GMFL9KAnticipations of the General Theory /@AKAKL@=DG?A;9DHD9;=LGKL9JLEQ GOF9F9DQKAK KALLMJFKGMLL@=>MF;LAGF9D9HHJG9;@MK=<:Q+9LAFCAFAKFGLKMAL=<LGL@= "=JE9F;9K= /@AK=EAF=FLKLM<=FLG>&=QF=KcOGJC@9K<=N=DGH=<9F=D9:GJ9L=>J9E=- OGJCO@A;@D=9N=KFGJGGE>GJL@="=JE9F9FL=;=<=FLKG>&=QF=KA9FAKE /@=J=9KGFK>GJ L@AKH=;MDA9J=P;DMKAGFDA=HJAF;AH9DDQAFN=JQKH=;Ad;9KKMEHLAGFK9:GMLL@=GJ?9FAK9LAGF G> K;A=FLAd; AFIMAJQ AF=;GFGEA;KGF=KO@A;@<A<FGLdL L@="=JE9F;9K= $FGJ<=J LG K@GOL@9L;GFLJ9JQLG+9LAFCAFcK9KK=JLAGFL@=J=O9K9;9K=9L9DD$J=KGJLLG;9K=KLM<A=K (QHMJHGK=@=J=AKFGLLG?AN=9>MDD9;;GMFLG>"=JE9F&=QF=KA9FAKE9L9KC9DJ=9<Q
9;;GEHDAK@=< :Q GL@=JK GE:9;@ =L 9D -9L@=J $ O9FL LG =EH@9KAK= ;GFLJA:MLAGFK 9F< ;GFLJA:MLGJK O@A;@ <=K;JA:="=JE9F&=QF=KA9FAKE O=DD O@AD= L@=Q ;9FFGL:=;9HLMJ=<:QL@=E=9KMJAF?JG<G>+9LAFCAFcK9HHJG9;@ /@AKAKO@Q$>G;MKGF.GE:9JL9F<'9ML=F:9;@ /@=Q9J=L@=D=9<AF?HJGL9?GFAKLKAF
EQKLGJQG> L@=JAK=G>&=QF=KA9FAKEAF"=JE9FQ .GE:9JLO9KL@=E=L@G<GDG?A;9D9FLAL@=KAKLG&=QF=KAF"=JE9FQL@=AFL=DD=;LM9D@=AJLGL@=@AKLGJA;9DK;@GGD9K&=QF=KO9K LG L@= LJ9<ALAGF AF9E:JA<?=9 L@=GJ=LA;9D AFFGN9LGJ9KO9K&=QF=K9F9ML@GJALQO@G O9K9DKG9LL@=;=FLJ=G>E9FQK;@GD9JDQ<AKHML=K '9ML=F:9;@GFL@=GL@=J@9F<DAL=J9DDQ MK=<LG:=;9DD=<bL@="=JE9F&=QF=Kc #=HGKK=KK=<FGF=G>L@=H=JKGF9D;@9J9;L=JAKLA;K G>&=QF=K@GO=N=J #=O9K9FAEH=;;9:D=;ANADK=JN9FL9DGG>E=LA;MDGMKH=JKGF9DDQEG<=KL9F<Q=LHJ=K=FLAF?L@=GJ=LA;9DAFKA?@LKAFH9JLKA?FAd;9FLDQ<A>>=J=FL:MLH9JLDQ N=JQKAEAD9JG>L=F:=>GJ=&=QF=K *F;=The General Theory had appeared, it met with a O9N=G>;JALA;9DJ=9;LAGFAF"=JE9FQ $@9N=DAKL=<EM;@G>L@AKDAL=J9LMJ=AFL@=J=>=J=F;=K
Anticipations
Wherein lies Keynes’ most important contribution to economics? Perhaps no one has tried to provide as clear-cut an answer as Don Patinkin. Although Patinkin has not always enjoyed the agreement of all his colleagues, his recent book (Patinkin, 1982) shows again why it is impossible to ignore his opinion on any matter Keynesian. His authority is as much based on his erudition and expertise as it is due to the care and circumspection with which each argument is presented, all sources are checked and contexts analysed. Even if the author proves to have failed to convince with his central message, the book would still be important as a landmark in raising the professional standards in the subdiscipline of the history of economic thought.
