Keynes: Trade Cycle from General Theory of Employment Interest Money

The General Theory of Employment, Interest and Money



Book I – Introduction

Chapter 1: The General Theory

Chapter 2: The Postulates of the Classical Economics

Chapter 3: The Principle of Effective Demand

Book II – Definitions and Ideas

Chapter 4: The Choice of Units

Chapter 5. Expectation as Determining Output and Employment

Chapter 6. The Definition of Income, Saving and Investment

Appendix on User Cost

Chapter 7. The Meaning of Saving and Investment Further Considered

Book III – The Propensity to Consume

Chapter 8. The Propensity to Consume: I. The Objective Factors

Chapter 9. The Propensity to Consume: II. The Subjective Factors

Chapter 10. The Marginal Propensity to Consume and the Multiplier

Book IV – The Inducement to Invest

Chapter 11. The Marginal Efficiency of Capital

Chapter 12. The State of Long-term Expectation

Chapter 13. The General Theory of the Rate of Interest

Chapter 14. The Classical Theory of the Rate of Interest

Appendix on the Rate of Interest in Marshall and Ricardo

Chapter 15. The Psychological and Business Incentives to Liquidity

Chapter 16. Sundry Observations on the Nature of Capital

Chapter 17. The Essential Properties of Interest and Money

Chapter 18. The General Theory of Employment Re-stated

Book V – Money-Wages and Prices

Chapter 19. Changes in Money-Wages

Appendix on Prof. Pigou’s Theory of Unemployment

Chapter 20. The Employment Function

Chapter 21. The Theory of Prices

Book VI – Short Notes Suggested by the General Theory

Chapter 22. Notes on the Trade Cycle

Chapter 23. Notes on Merchantilism, the Usury Laws, Stamped Money and Theories of Under-consumption

Chapter 24: Concluding Notes on the Social Philosophy towards which the General Theory might Lead



Sparkassen müssen 850 Millionen Euro abschreiben

Sparkassen müssen 850 Millionen Euro abschreiben

Schock für die Sparkassen: Die Institute müssen eine Abschreibung von 850 Millionen Euro auf den Wert der Landesbank Berlin vornehmen. Der neue Präsident Georg Fahrenschon muss gleich eine Krise bewältigen.

Handelsblatt – 01.12.2011, 13:34

The Euro and European Economic Conditions

The Euro and European Economic Conditions
by Martin S. Feldstein – National Bureau of Economic Research


The creation of the euro should now be recognized as an experiment that has led to the sovereign debt crisis in several countries, the fragile condition of major European banks, the high levels of unemployment, and the large trade deficits that now exist in most Eurozone countries. Although the European Central
Bank managed the euro in a way that achieved a low rate of inflation, other countries both in Europe and elsewhere have also had a decade of low inflation without incurring the costs of a monetary union.


The emergence of these problems just a dozen years after the start of the euro in 1999 was not an accident or the result of bureaucratic mismanagement but the inevitable consequence of imposing a single currency on a very heterogeneous group of countries, a heterogeneity that includes not only economic structures
but also fiscal traditions and social attitudes.


This paper reviews

  • (1) the reasons for these economic problems
  • (2) the political origins of the European Monetary Union
  • (3) the current attempts to solve the sovereign debt problem
  • (4) the long-term problem of inter-country differences of productivity growth and competitiveness
  • (5) the special problems of Greece and Italy
  • (6) and the pros and cons of a Greek departure from the Eurozone.

Martin S. Feldstein – Harvard – PDF [18 pages]


Archiv-Beiträge zu Prof. Feldstein