Keynes's General Theory Reconsidered in the Context of the Japanese Economy

Keynes's General Theory Reconsidered in the Context of the Japanese Economy
Springer | Macroeconomics | June 21, 2016 | ISBN-10: 4431559132 | 98 pages | pdf | 1.89 mb

Authors: Otaki, Masayuki
Builds a dynamic and analytical microeconomic foundation of The General Theory of Employment, Interest and Money
Develops the concept of liquidity in relation to speculative bubbles and provides a rigorous framework for determining the meaning of the separation between ownership and management
Provides an applicable theory to economies in reality, specifically to the current stagnant Japanese economy and to the Great Depression

This book reconsiders Keynes's The General Theory of Employment, Interest and Money and establishes a new interpretation. In contrast to the existing models, this book finds that the stickiness in the nominal wage is not crucial for his theory. Moreover, the author has also succeeds in capturing the concept of liquidity in a rigorous mathematical model. In conjunction with the development of the concept of liquidity, the separation of the decision between savings and capital investment, which plays a key role in the principle of effective demand and denies Say's law, is exactly and originally formulated.
The theory thus developed is applicable to elucidating some serious political economic causes that entrap the long-stagnated Japanese economy. For example, an analytical explanation is provided about why disinflation/deflation incessantly progresses despite the exorbitant expansionary monetary policy (ijigen kin-yuu seisaku) by the Bank of Japan. This phenomenon is an unsolvable question from the quantity-theoretic approaches (e.g., monetarism and new Keynesianism) which, although they differ in assumptions concerning the length of adjustment periods, commonly assume that the price level sooner or later rises in proportion to the quantity of money.
Owing much to Keynes, the author's approach considers that the price level is mainly governed by its marginal prime cost which is equal to the nominal wage as a first approximation. As such, the drastically sagging wages during the past 10 years provoke serious disinflation/deflation. It should be noted that this discussion never depends on the quantity of money.

Number of Illustrations and Tables
19 b/w illustrations, 1 illustrations in colour
Macroeconomics/Monetary Economics//Financial Economics
Economic Theory/Quantitative Economics/Mathematical Methods

Download link:

Buy Premium From My Links To Support Me & Download with MaX SPeeD!

Alternate Link for Keynes's General Theory Reconsidered in the Context of the Japanese Economy.rar When above links are dead

Hello Respective Visitor!

Please Login or Create a FREE Account to gain accesss to hidden contents.


Would you like to leave your comment? Please Login to your account to leave comments. Don't have an account? You can create a free account now.