On 11/16/2011 6:33 PM, Alan G Isaac wrote:
>
> Just to be clear, Keynes is praising the *generality* of his
> own theory. He is *not* saying that it best applies under
> totalitarian conditions. Rather he is claiming that, as
> a more general theory, it can also be adapted to such
> conditions, and more readily so than a theory that cannot
> explain the level of output.
>

Interesting point. I wonder whether Keynes' claim about generality is 
parallel to a claim made by Luigi Pasinetti:

"My claim is that the principle of effective demand belongs to a much 
more fundamental stage of investigation than the one at which most of 
Keynes’s analysis was (and is) carried out. More precisely, my claim is 
that it belongs to a level of investigation that is independent of the 
particular institutions that any economic system may have chosen to adopt."

"The Principle of Effective Demand and its Relevance in the Long Run," 
Journal of Post Keynesian Economics, vol. 23, pp. 383-390.

http://docenti.unicatt.it/web/scheda_pubblicazione.do?cod_docente=00533&language=ENG&id_pubblicazione=2942&section=pubblicazioni#

Michael Nuwer