The monetary economy, savings and financing: from the Treatise to the General Theory

The idea of monetary economy played an important role in Keynes’s movement from the Treatise on Money (1930) to the General Theory (1926). He was trying to work a new economic paradigm which, in opposition to the classical Say’s Law, could deal with the fluctuations and uncertainties of the real world. The purpose of this article is to present Keynes’s theories of savings and finance in the Treatise and to show the importance of the 1936-1937’s version to the functioning of a real-world economy.

KEYWORDS:
History of economic thought; Keynes