@article{762943,
      recid = {762943},
      author = {Otaki, Masayuki,},
      title = {Keynes's general theory reconsidered in the context of the  Japanese economy /},
      pages = {1 online resource.},
      abstract = {This book reconsiders Keynes's The General Theory of  Employment, Interest and Money and establishes a new  interpretation. In contrast to the existing models, this  book finds that the stickiness in the nominal wage is not  crucial for his theory. Moreover, the author has also  succeeds in capturing the concept of liquidity in a  rigorous mathematical model. In conjunction with the  development of the concept of liquidity, the separation of  the decision between savings and capital investment, which  plays a key role in the principle of effective demand and  denies Say's law, is exactly and originally formulated. The  theory thus developed is applicable to elucidating some  serious political economic causes that entrap the  long-stagnated Japanese economy. For example, an analytical  explanation is provided about why disinflation/deflation  incessantly progresses despite the exorbitant expansionary  monetary policy (ijigen kin-yuu seisaku) by the Bank of  Japan. This phenomenon is an unsolvable question from the  quantity-theoretic approaches (e.g., monetarism and new  Keynesianism) which, although they differ in assumptions  concerning the length of adjustment periods, commonly  assume that the price level sooner or later rises in  proportion to the quantity of money. Owing much to Keynes,  the author's approach considers that the price level is  mainly governed by its marginal prime cost which is equal  to the nominal wage as a first approximation. As such, the  drastically sagging wages during the past 10 years provoke  serious disinflation/deflation. It should be noted that  this discussion never depends on the quantity of money.},
      url = {http://library.usi.edu/record/762943},
}