ABSTRACT
Keynes considered Say’s law of markets among his greatest obstacles to formulating policies to deal with economic depressions and high unemployment because he believed the law claims there are no obstacles to full employment and that contemporary economists believed the same too. Keynes’s misinterpretation of Say’s Law has long been recognized. However, there is lack of consistency in explaining the nature of Keynes’s misinterpretation of the law for the short run, which thus has prevented analysts from deriving the relevant policy conclusions from Say’s Law. This chapter illustrates the impediments of Keynes’s influence on some notable interpreters of the law.
