Is there a place for rational expectations in keynes’s general theory?


Book Section

© 1997 Selection and editorial matter, G.c. Harcourt and P.A. Riach. Keynes distinguishes between long-term and short-term expectations (G. T.: 46-7). The distinction mirrors Marshall's distinction between the long run, in which factors of production are all variable, and the short run, in which the firm's capital equipment is fixed. Keynes argues that an entrepreneur consults his long-term expectations in determining the amount of his investment in plant and machinery, and consults his short-term expectations in determining the scale of his current output.

Full Text

Duke Authors

Cited Authors

  • Hoover, KD

Published Date

  • January 1, 2006

Book Title

  • A 'Second Edition' of the General Theory

Start / End Page

  • 219 - 237

International Standard Book Number 13 (ISBN-13)

  • 9780415406994

Digital Object Identifier (DOI)

  • 10.4324/9780203980316-28

Citation Source

  • Scopus