I interpret Keynes' remark differently, based on a few paragraphs from Skidelsky's new book, KEYNES: The Return of The Master. I'll paste the passage below. I read that as an attack on General Equilibrium / neoclassical economics, and a market adjustment of prices and quantities more than connecting it with the quantity theory.
Skidelsky's paragraphs from page 79: A new book by Robert Skidelsky, the famous Keynes biographer, quotes the phrase in context: The point at issue emerged in an exchange between two nineteenth-century economists which Keynes like to cite as a fork in the road. In 1817 David Ricardo wrote to his friend Thomas Malthus: It appears to me that one great cause of our difficulties … is that you have always in your mind the immediate and temporary effects of particular changes, whereas I put these immediate and temporary effects quite aside, and fix my whole attention on the permanent state of things which will result from them. To this Malthus replied: I certainly am disposed to refer frequently to things as they are, as the only way of making one's writing practically useful to society … Besides I really do think that the progress of society consists of irregular movements, and that to omit the consideration of causes which for eight or ten years will give a great stimulus to production and population or a great check to them is to omit the causes of the wealth and poverty of Nations. “Keynes sided with Malthus. His first major impact on economics was to switch the focus of economic reasoning from the long run for the short term––i.e. to pick up Malthus's baton. It was surely the Ricardo–Malthus exchange he had in mind when penning his best-known aphorism: “but this long run is a misleading guide to affairs. In the long run we are all dead. Economists set themselves to easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again.” Gene On Apr 13, 2012, at 5:21 PM, Shane Mage wrote: > > On Apr 13, 2012, at 4:02 PM, raghu wrote: >> Didn't Keynes already answer this type of reasoning with his immortal >> quote about our long-run longevity? > > Keynes was talking about the quantity theory of money. Nothing else. > All economic behavior is time-dependent. That's why "vulgar political > economy" is nonsense. > > > > Shane Mage > > > This cosmos did none of gods or men make, but it > always was and is and shall be: an everlasting fire, > kindling in measures and going out in measures." > > Herakleitos of Ephesos > > > > > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l
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