Keynes made it crystal clear in his comments on the draft copy of Pigou’s future 1937 article in the Economic Journal that Pigou’s fundamental error was to have two different theories of the rate of interest, one determined by the demand and supply of money, and the other one determined by...

A major source of confusion about Keynes’s Liquidity Preference theory of the rate of interest is the failure of readers of the General Theory to recognize that chapter 13 is an introductory chapter that lays the ground work and foundations for chapter 15. Keynes’s actual theory is presented...

In his August 30th, 1935 letter to Keynes, Harrod not once, but twice, conceded that Keynes had radically reconstituted the classical and neoclassical theory of the rate of interest by pointing out that the standard theory was one equation short. However, by adding the missing Liquidity...

Extreme mathematical illiteracy played a basic, fundamental role in the assessments made by Joan Robinson, Ralph Hawtrey and Dennis Robertson of Keynes's Theory of Liquidity Preference, which Harrod described in an August 30 1935, letter to Keynes as a major reconstruction of interest rate...

J. M. Keynes gave a very detailed analysis of the three different ranges of the LM curve (normal, vertical, horizontal) on pages 207-208 of the General Theory in chapter 15 in the course of his discussions of the problem of Absolute Liquidity Preference in relation to the question of the...

Keynes ‘s first paragraph in his letter of the 9th of November, 1936, to Joan Robinson is the following two lines: “I beg you not to publish. For your argument as it stands is most certainly nonsense.”Anyone who reads this correspondence will soon realize that it was simply impossible for...

Keynes‘s first paragraph in his letter of the 9th of November,1936, is the following two lines: “I beg you not to publish. For your argument as it stands is most certainly nonsense.”Anyone who reads this correspondence will soon realize that it was simply impossible for Joan Robinson to...