Most helpful client reviews
1 of 3 people found the following review helpful.
The writers of these essays need to learn how to Integrate
By Michael Emmett Brady
This collection of essays is written by subscribers whose conduct is similar to the blind men(women)trying to tell apart an animal(elephant) by examining a dissimilar percentage of the animal’s anatomy.You end up getting a number of dissimilar answers which are all wrong.The best example of this occurs in the introductory three essays written by C Sardoni,M Desai and M Marcuzzo.Keynes’s theory of effective demand is composed of two parts.The primary portion is the D-Z model introduced in chapter 3 of the General Theory(GT),which Keynes analyzed on pp.55-56,ft.2 and in chapters 20(pp.280-286) and 21(pp.304-306).Any reader of this review who knows how to integrate(take the antiderivative of the derivative)can go to the above noted pages and integrate Keynes’s differential calculus analysis.It is simple to find out that the expected aggregate demand function is D=pO,given that O is a function of N,where N represents aggregate employment and p is specified as an expected price.Similarly,the aggregate supply function,Z,must be equivalent to P +wN,where w is the actual cash wage and P is expected economic Profit.A set of dissimilar D=Z points is created,one for each dissimilar expected price(and corresponding dissimilar expected profits).The other part of Keynes’s model is the current or actual aggregate demand,Y=C+I,where C=bY or C=a+bY.The D=Z curve is called by Keynes the aggregate supply curve.All three of the above brought up economists confuse the aggregate supply function with the aggregate supply curve.One discovers the amount of involuntary jobless in the macro economy by comparing Y with the D=Z locus.It is mathematically totally unlikely for Z to be equivalent to pO.Similarly, it is mathematically inconceivable for D=C+I.The genuinely interesting question is why has there been a closely 70 year search by economists for an answer to the question “What did Keynes genuinely mean?”.Integrate the derivatives and find out.
See all 1 client reviews…
