Keynes

The General Theory of Employment, Interest, and Money By John Maynard Keynes
Feburary 1936

Table of Contents
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PREFACE PREFACE TO THE GERMAN EDITION PREFACE TO THE JAPANESE EDITION PREFACE TO THE FRENCH EDITION

Introduction
1. THE GENERAL THEORY 2. THE POSTULATES OF THE CLASSICAL ECONOMICS 3. THE PRINCIPLE OF EFFECTIVE DEMAND

Definitions and Ideas
4. THE CHOICE OF UNITS 5.EXPECTATION AS DETERMINING OUTPUT AND EMPLOYMENT 6. THE DEFINITION OF INCOME, SAVING AND INVESTMENT 7. THE MEANING OF SAVING AND INVESTMENT FURTHER CONSIDERED

The Propensity to Consume
8. THE PROPENSITY TO CONSUME: I. THE OBJECTIVE FACTORS 9. THE PROPENSITY TO CONSUME: II. THE SUBJECTIVE FACTORS 10. THE MARGINAL PROPENSITY TO CONSUME AND THE MULTIPLIER

The Inducement to Invest
11. THEMARGINAL EFFICIENCY OF CAPITAL 12. THE STATE OF LONG-TERM EXPECTATION 13. THE GENERAL THEORY OF THE RATE OF INTEREST

14. THE CLASSICAL THEORY OF THE RATE OF INTEREST
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APPENDIX ON THE RATE OF INTEREST IN MARSHALL'S PRINCIPLES OF ECONOMICS, RICARDO'S PRINCIPLES OF POLITICAL ECONOMY, AND ELSEWHERE

2. THE PSYCHOLOGICAL AND BUSINESS INCENTIVES TO LIQUIDITY 3. SUNDRY OBSERVATIONS ON THE NATURE OFCAPITAL 4. THE ESSENTIAL PROPERTIES OF INTEREST AND MONEY 5. THE GENERAL THEORY OF EMPLOYMENT RE-STATED

Money-wages and Prices
6. CHANGES IN MONEY-WAGES
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PROFESSOR PIGOU'S 'THEORY OF UNEMPLOYMENT'

7. THE EMPLOYMENT FUNCTION 8. THE THEORY OF PRICES

Short Notes Suggested by the General Theory
9. NOTES ON THE TRADE CYCLE 10. NOTES ON MERCANTILISM, THE USURY LAWS, STAMPED MONEY ANDTHEORIES OF UNDER-CONSUMPTION 11. CONCLUDING NOTES ON THE SOCIAL PHILOSOPHY TOWARDS WHICH THE GENERAL THEORY MIGHT LEAD
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Appendix 1 Appendix 2 Appendix 3

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PREFACE
This book is chiefly addressed to my fellow economists. I hope that it will be intelligible to others. But its main purpose is to deal with difficult questions of theory, and only in the second place with the applicationsof this theory to practice. For if orthodox economics is at fault, the error is to be found not in the superstructure, which has been erected with great care for logical consistency, but in a lack of clearness and of generality in the pre misses. Thus I cannot achieve my object of persuading economists to re-examine critically certain of their basic assumptions except by a highly abstractargument and also by much controversy. I wish there could have been less of the latter. But I have thought it important, not only to explain my own point of view, but also to show in what respects it departs from the prevailing theory. Those, who are strongly wedded to what I shall call 'the classical theory', will fluctuate, I expect, between a belief that I am quite wrong and a belief that I am sayingnothing new. It is for others to determine if either of these or the third alternative is right. My controversial passages are aimed at providing some material for an answer; and I must ask forgiveness If, in the pursuit of sharp distinctions, my controversy is itself too keen. I myself held with conviction for many years the theories which I now attack, and I am not, I think, ignorant of theirstrong points. The matters at issue are of an importance which cannot be exaggerated. But, if my explanations are right, it is my fellow economists, not the general public, whom I must first convince. At this stage of the argument the general public, though welcome at the debate, are only eavesdroppers at an attempt by an economist to bring to an issue the deep divergences of opinion between felloweconomists which have for the time being almost destroyed the practical influence of economic theory, and will, until they are resolved, continue to do so. The relation between this book and my Treatise on Money [JMK vols. v and vi], which I published five years ago, is probably clearer to myself than it will be to others; and what in my own mind is a natural evolution in a line of thought which...