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Money, Employment, and Interest: Towards a Reconstruction of Keynesian Economics

Money, Employment, and Interest: Towards a Reconstruction of Keynesian Economics

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This study argues that demand restrictions and involuntary unemployment arise from asymmetries between demand and supply in a monetary economy, and between the abilities of the firm and the household to adjust to market conditions. Fujino discusses the behavior of firms under uncertain demand; analyzes output-inventory, output-backlog, and fixed investment decisions; evaluates the approach to macroeconomic behavior of output and prices by means of aggregate supply functions; and details liquidity-preference and loanable funds theories of interest.

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This study argues that demand restrictions and involuntary unemployment arise from asymmetries between demand and supply in a monetary economy, and between the abilities of the firm and the household to adjust to market conditions. Fujino discusses the behavior of firms under uncertain demand; analyzes output-inventory, output-backlog, and fixed investment decisions; evaluates the approach to macroeconomic behavior of output and prices by means of aggregate supply functions; and details liquidity-preference and loanable funds theories of interest.

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