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A. Hansen's gross error concerning J M Keynes's analysis in chapter 14 on pp. 180-181 of the General Theory in his A Guide to Keynes changed the course of economic thought and economic history for the worse due to the millions of economics students who, instead of reading the General Theory,...
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Keynes chose to base the General Theory on the same type of microeconomic foundations that are contained in A C Pigou's The Theory of Unemployment (1933), Part II, Chapters 8-10. This allowed Keynes to make a direct comparison - contrast between the two models in the appendix to Chapter 19....
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Keynes provided a technical analysis on pages 179-181 of the General Theory that identified two separate rates of interest, r1 and r2, each different rate of interest associated with a different Demand for Investment and Supply of Savings Intersection. Each combination would provide a different,...
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