Hicks, a Teoria Geral e a Teoria Geral generalizada

Heller, Claudia (2007): Hicks, a Teoria Geral e a Teoria Geral generalizada. Forthcoming in: Revista EconomiA

Abstract

Despite the most common interpretation of John Hicks´s formalization of the General Theory that it was mainly oriented to achieve "mathematical elegance", this paper shows that Hicks´s results are based on theoretical arguments and specific causality relations. Hicks acknowledges the importance of the "liquidity preference doctrine" and examines the effects of investment on income (the multiplier) as well as the effects of income on investment (the accelerator). Our interpretation of Hicks´s formulation and especially of the role of the rate of interest rate in his paper avails the understanding of the success of the so-called "neoclassical synthesis".

• Item Type: MPRA Paper
• Institution: UNESP
• English Title: Hicks, the General Theory and the generalization of the General Theory
• Language: Portuguese
• Subjects: B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925 > B22 - Macroeconomics; B - History of Economic Thought, Methodology, and Heterodox Approaches > B2 - History of Economic Thought since 1925

References

Hicks, J. R. (1937). Mr. Keynes and the 'classics': a suggested interpretation. Econometrica 5: 147-159 Keynes, J M (1936). The General Theory of Employment, Interest and Money. New York: Prometheus Books, 1997 Young, W. (1987). Interpreting Keynes: the IS/LM enigma, Boulder, Colorado