Jonathan Duran

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What is a limiting point of the possible positions of equilibrium?

Reading Keynes General Theory, he writes that the classical theory is applicable when it assumes to be a limiting point of the possible positions of equilibrium. What does he mean by limiting point?

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    Jul 4 2012: I found this quote from Wikipedia:

    "I shall argue that the postulates of the classical theory are applicable to a special case only and not to the general case, the situation which it assumes being a limiting point of the possible positions of equilibrium."

    http://en.wikipedia.org/wiki/The_General_Theory_of_Employment,_Interest_and_Money

    Apparently he is opposing the consensus on economics and calling this consensus (agreed to by some really smart guys like Adam Smith, John Locke, Milton Friedman, Ludwig Von Mises, et. al.) the limiting point.

    Imo whenever I read something that is ambiguous and esoteric red flags go up in my head, I get red flags when I started reading about Keynes' ideas.

    Can I give you some advise about study? Take or leave it but consider it before you dismiss it.

    Whenever you are studying something ALWAYS study it on how it can be and is applied. By doing this you cut through the crap. Otherwise the author can lead you down the rabbit hole getting further and further from realty.

    In the case of Keynesian economics I have only seen it applied by politicians looking for an excuse to spend money to get votes which gives rise to the polarity of socialism which does not work.

    My second piece of advise regarding study, information is only as valuable as it is weighed. The antithesis of this is studying for the test and forgetting it immediately after. What this means is weighing the information against other information on the subject, the proverbial scales of truth.

    There is a ton to know about this subject and Keynes is one small fraction of the information. Incidentally one of his star pupils is an economist named Paul Krugman (Nobel prize winner) who says the only mistake Obama made was not spending enough money.
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    Jul 4 2012: i'm following this conversation with great interest