The following points highlight the six criticisms by Keynes’s on Classical Theory of Market. The criticisms are: 1. Underemployment Equilibrium and the Waste of Resources 2. Inevitability of State Intervention 3. Emphasis on the Study of Macroeconomics 4. Refutation of Say's Law of Markets 5. Lack of Reliability of Wage Cutting as a Cure for Unemployment 6. Recognition to Money [...]
Let us make an in-depth study of the Keynes’s Rejection of the Quantity Theory:- 1. Keynes' Rejection of the Traditional Quantity Theory 2. Keynes's Own Version 3. The Reformulated Quantity Theory 4. Merits of Keynes' Version of the Quantity Theory of Money 5. Assumptions and Limitations. Keynes' Rejection of the Traditional Quantity Theory: The classical quantity theory of money was [...]
The below mentioned article provides a close view on the Say’s Law of Market. Introduction to Say’s Law of Markets: The most fundamental and central proposition of classical economics was Say's Law of Markets, after J.B. Say, a French Economist (1797-1832), who first stated the law in a systematic form. Briefly stated, this law means that 'supply always creates its [...]