ABSTRACT
This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book discusses Keynes’s distinction between a co-operative and an entrepreneur economy. It is with the state of rest determined by the principle of effective demand. In the General Theory another type of equilibrium is introduced, which is the precarious state of rest brought about by the divergent opinions of the bulls and the bears in speculative markets. The book distinguishes between the information at the disposal of the observing economist and that made available to the agents in the model. It examines Keynes’s aggregate supply and demand curves and the derivation thereof by keeping in mind the distinction between what the model-builder knows and what the agents in the model are supposed to know. The book explores what type of information the agents in the model have about each other’s behaviour.
