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Money, Investment and Consumption: Keynes’s Macroeconomics Rethought By O. F. Hamouda

Contrary to the commonly perpetuated belief that Keynes's theory is appropriate only to economic depressions, the author of this provocative book maintains that Keynes provided a complete set of macroeconomic relations and the ingredients of a new theoretical model, much more reflective of and analytically appropriate to the 21st century than those on which current macroeconomics is based.

With the perspective of Keynes as the backdrop, the author begins with a discussion of the characteristics of the financial crises of 2008 and the 1930s. He then goes on to show that Keynes provided a novel, general theory, constructed as the EC-SP model (different from that of the Classicals' Labour Theory of Value model and the neoClassicals' antithetical IS-LM model), a theory yet unrecognized as being behind both A Treatise on Money and The General Theory. He presents here the premises of Keynes's contributions which still await use by a generation of economists to reassess macroeconomics and orient it in a new direction.

This unique and authoritative look at Keynes's body of work will be an essential read for scholars and students of economics. Anyone trying to understand the state of the `entrepreneurial economy', of which the 2008 financial crisis is but one manifestation prone to recurrence, will find the work an important resource.

About the Author

O.F. Hamouda, Associate Professor of Economics, York University, Canada

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