On the Keynesian notion of equilibrium and dynamics

Harrod had always maintained that Keynes's Treatise was much more amenable for dynamic analysis than The General Theory. However, in much of the later work on Keynesian dynamics The General Theory became the foundation. In this paper, I argue that recent developments in neoclassical general equilibrium theory have the effect of undermining the conventional Keynesian conception of dynamics based on The General Theory, and recasting Keynes as a coarse precursor of modem general equilibrium analysis. Opposing this renewed orthodox reinterpretation of Keynes might require a reconsideration of the Treatise as the foundation for an alternative Keynesian dynamics. (C) 1996 Academic Press Limited