The Leading eBooks Store Online 4,252,064 members ⚫ 1,413,299 ebooks

New to eBooks.com?

Learn more

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

Keynes’s  General Theory Reconsidered in the Context of the Japanese Economy by Masayuki Otaki
Buy this eBook
US$ 69.99
(If any tax is payable it will be calculated and shown at checkout.)

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.


Springer Japan; May 2016
102 pages; ISBN 9784431559153
Read online, or download in secure PDF format
Title: Keynes’s General Theory Reconsidered in the Context of the Japanese Economy
Author: Masayuki Otaki
 
  • News
  • Contents
No entry found