Examining the emergence, in the inter-war years, of what came to be called 'Keynesian macroeconomics'. This study accepts the novelty of the latter, as represented by the IS-LM model, which in various forms came to dominate the sub-discipline for three decades. It argues, however, that this model did not represent a radical change in economic thinking but rather an extremely selective synthesis of those which had permeated the preceding literature, including Keynes's own contributions to it, not least the General Theory. Hence the book questions the appropriateness of thinking of this development as the outcome of a 'Keynesian Revolution' in economic thought, partly because the most radical aspects of Keynes's own intended contribution were excluded from it, but mainly because IS-LM is better viewed as the end result of twenty years or more of intellectual development to which many others besides Keynes contributed.
• Controversial assessment of just how original J. M. Keynes's views were when his name became synonymous with 'deficit spending' • Author is both an economic theorist and historian of economic thought • Author is one of the world's leading specialists in monetary theory and analysis
Introduction; 1. An overview; Part I. The Wicksellians: 2. Wicksellian origins; 3. The macrodynamics of the Stockholm school; Part II. The Marshallian Tradition in Britain: 4. Cambridge cycle theory: Lavington, Pigou and Robertson; 5. The monetary element in the Cambridge tradition; 6. The Treatise on Money and related contributions; 7. British discussions of unemployment; Part III. American Analysis of Money and the Cycle: 8. American macroeconomics between World War I and the Depression; 9. American macroeconomics in the early 1930s; Part IV. Keynes, the Classical and IS-LM: 10. The General Theory; 11. The classics and Mr. Keynes; 12. IS-LM and the General Theory; 13. Selective synthesis; References.