Coping with Reality: Keynes Versus Mainstream Textbooks in Economics

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Abstract

Abstract: Despite the fact that The General Theory of Theory of Interest, Employment and Income (GT) is a highly theoretical work, Keynes tries to make his theory as realistic as possible. In this paper it is analyzed how. This is done by identifying selected quotations in which Keynes either explicitly refers to the actually existing economy or comments upon or relates to the question of theorizing versus reality. By analyzing (or generalizing) this empirical material it is demonstrated that Keynes copes with reality by generalizing from experience, giving priority to the most important parts of economic reality and by making empirically based assumptions rather than assumptions consistent to a theoretical model. If economic textbooks were to apply the same stringent principles not much would be left…
Original languageEnglish
PublisherCentre for Comparative Welfare Studies, Institut for Økonomi, Politik og Forvaltning, Aalborg Universitet
Number of pages9
ISBN (Electronic)978-87-92174-76-5
Publication statusPublished - 2009

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Economics
Textbooks
John Maynard Keynes
Income
General theory
Theorizing

Keywords

    Cite this

    Madsen, P. T. (2009). Coping with Reality: Keynes Versus Mainstream Textbooks in Economics. Centre for Comparative Welfare Studies, Institut for Økonomi, Politik og Forvaltning, Aalborg Universitet.
    Madsen, Poul Thøis. / Coping with Reality : Keynes Versus Mainstream Textbooks in Economics. Centre for Comparative Welfare Studies, Institut for Økonomi, Politik og Forvaltning, Aalborg Universitet, 2009.
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    Madsen, PT 2009 'Coping with Reality: Keynes Versus Mainstream Textbooks in Economics' Centre for Comparative Welfare Studies, Institut for Økonomi, Politik og Forvaltning, Aalborg Universitet.

    Coping with Reality : Keynes Versus Mainstream Textbooks in Economics. / Madsen, Poul Thøis.

    Centre for Comparative Welfare Studies, Institut for Økonomi, Politik og Forvaltning, Aalborg Universitet, 2009.

    Research output: Working paperResearch

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    Madsen PT. Coping with Reality: Keynes Versus Mainstream Textbooks in Economics. Centre for Comparative Welfare Studies, Institut for Økonomi, Politik og Forvaltning, Aalborg Universitet. 2009.