Keynes on the ‘Trade Cycle’

Keynes, throughout the “General Theory,” was concerned with explaining how his marginalist equation of “equilibrium” — marginal efficiency of capital = rate of (money) interest — could correspond to mass unemployment. The industrial cycle itself was of secondary concern for him. Nevertheless, in Chapter 22, entitled “Notes on the Trade Cycle,” Keynes does deal with the industrial cycle, or as he called it in the English manner, the “trade cycle.”

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