LongPeriod Keynesians
Sraffa, though a close friend of Keynes, was not bowled over by The General Theory. (He did defend Keynes's Treatise on Money against Friedrich von Hayek's
attack, in the process using the concept of own rates of interest. Keynes used the concept to play a key role in the crucial, difficult chapter 17 of The General Theory. We suspect that Sraffa would not have approved, because he used the concept in an internal critique of Hayek's system, not to analyze actual economies.) Sraffa's followers embraced Keynes but argued that for his theory to be revolutionary, he must provide (or have provided) a long-period theory of effective demand purged of neoclassical leftovers in, for example, the mec of his investment theory which, they argue, is vulnerable to the capital theory critique (not so, according to Pasinetti). Murray Milgate (1982) is the most detailed argument for this viewpoint but there are prior articles by, for example, Pierangelo Garegnani, gathered together (including dissent from Joan Robinson) in the 1983 collection edited by John Eatwell and Milgate.
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