From Introduction: It is now nearly 50 years since the appearance of Keynes's General Theory of Employment, Interest and Money and the stream of articles and books on what Keynes really meant or didn't mean shows no sign of abating. In part, this dissertation is a contribution to this voluminous literature, but what follows is hardly an attempt to provide an exhaustive interpretation. Instead the General Theory is examined from a certain angle, with the title "Equilibrium, Expectations and Information" providing the framework for the investigation. That the title has been borrowed from G.B. Richdrdson's 1959 Economic Journal article is no accident. Richardson's work has been unduly neglected and his trichotomy serves as a convenient platform from which to analyse Keynes's method and those of his interpreters, in particular the approaches stemming from the work of Clower and Leijonhufvud. The information structure of the Walrasian type of general equilibrium model is also examined as the latter forms the basis of both the neo-classical interpretation of Keynes's contribution and the rational expectations approach that will be discussed. Finally Richardson's framework is applied in an analysis of two modern classical schools of thought, namely the rational expectations approach headed by Lucas, and the neoRicardian school amongst which Garegnani, Eatwell and Milgate, for example, are prominent. In a sentence, therefore, what follows is an examination of the General Theory and certain interpretations thereof as well as an analysis of modern classical macroeconomics, with the equilibrium-expectations-information framework providing the unifying theme. As will become apparent, the framework does not consist of three watertight compartments. For example, whether a system is in equilibrium or not will depend on whether the expectations of those who have the ablility to effect change are realised. The specification of which agents have this power will depend on the information with which the model builder endows the agents in the model. In discussing this, attention is drawn to Keynes's important distinction between an entrepreneur economy and a cooperative economy. The distinction between the information available to the model builder and that with which he endows the agents in the model is also emphasized.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:rhodes/vital:1035 |
| Date | January 1984 |
| Creators | Torr, Christopher |
| Publisher | Rhodes University, Faculty of Commerce, Economics and Economic History |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis, Doctoral, PhD |
| Format | 153 leaves, pdf |
| Rights | Torr, Christopher |
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