Our findings indicate that Keynes reached a turning point towards the end of 1932, meaning by this not his establishment of the theory determining the level of employment (or output), but his construction of a new model which we refer to as ‘Model 1’ below. The crucial evidence comes from...

The global financial crisis, which began in August 2007 and continues with no end in sight, has thrown macroeconomics into turmoil. This book challenges the current mainstream macroeconomic tradition, rejecting the view that whatever shock hits the economy, the response is an automatic and rapid...

The main purpose of this paper is to clarify on the evidence of primary material how Keynes transformed his theory from the Tract to the Treatise. Keynes went on working along the lines of the Tract theory until around April 1926, subsequently adopting the Transaction Approach up until September...