A Reinterpretation of Chapter 17 of Keynes's general Theory: Effective Demand Shortage Under Dynamic Optimization
用连续时间动态优化模型重新解读凯恩斯《通论》第17章，指出在货币经济中，主观利率与市场利率的均衡条件可能与市场均衡不一致，导致持续停滞，并提出替代IS-LM分析的新方法。
This article is an attempt to formalize Chapter 17 of Keynes's General Theory using a continuous dynamic optimization model with perfect foresight. I present two subjective interest rates: the time preference rate and the liquidity premium that, respectively, govern the consumption‐saving and portfolio decisions. Under optimal household behavior, they are equalized to the market rate of interest. In the monetary economy described by Keynes, however, the equality can be inconsistent with the condition of market equilibrium, in which case persistent stagnation occurs. A new analytic method based on dynamic optimization is proposed as an alternative to IS‐LM analysis.