Post World War II politics and Keynes’s aborted revolutionary economic theory

Resumen

“...in the General Theory ...injustice becomes a matter of uncertainty, justice a matter of contractual predictability” (Skidelsky, 1992, p. 223). “The terms in which contracts are made matter. In particular, if money is the goods in terms of which contracts are made, then the prices of goods in terms of money are of special significance. This is not the case if we consider an economy without a past or future… if a serious monetary theory comes to be written, the fact that contracts are made in terms of money will be of considerable importance” (Arrow; Hahn, 1971, p. 356-357, italics added). “In the first place, the fact that contracts are fixed... in terms of money unquestionable plays a large part” (Keynes, 1936, p. 236). “It seems to me that economics is a branch of logic: a way of thinking... One can make some quite worthwhile progress merely by using axioms and maxims. But one cannot get very far except by devising new and improved models. This requires... vigilant observation of the actual working of our system. Progress in economics consists almost entirely in a progressive movement in the choice of models” (Keynes, 1938).