Preface 9
CHAPTER Ⅰ Three Trends in Modern Economics 11
1．What is modern about modern economics？ 11
2．Macro versus micro 14
3．Keynesianism 17
4．The revival of classical theory 22
5．Quantitative thinking 24
6．The set-up of this book 29
CHAPTER Ⅱ Productive Capacity Determines National Income：The Classical Theory 33
1．Say＇s Law 33
2．The productivity of labour determines prosperity 37
3．The capacity effect and the income effect of investments 42
4．The classical system 45
CHAPTER Ⅲ Total Expenditure Determines National Income：Keynes＇s Theory 49
1．The breaking of Say＇s Law 49
2．The propensity to save and the multiplier 55
3．Is Keynesianism depression economics？ 60
4．Is hoarding or saving the cause of unemployment？ 65
CHAPTER Ⅳ How do we Build a Model？ 69
1．Logical and quantitative models 69
2．The simple Keynesian model 71
3．What determines investment？ 78
4．The stability of national income 83
CHAPTER Ⅴ The Impact of International Trade 90
1．The classical view of the balance of payments 90
2．The income effect of exports 94
3．The model becomes more complete 97
4．The rate of exchange dethroned？ 101
5．The international economy 105
CHAPTER Ⅵ The Role of the Budget 108
1．Government expenditure，taxes，and national income 108
2．Budgetary equilibrium 113
3．Functional Finance 116
4．The national debt 119
5．The Haavelmo effect 123
6．Is Functional Finance a danger？ 126
CHAPTER Ⅶ Old and New in the Theory of Money 130
1．What is the theory of money？ 130
2．The income sphere and the capital sphere 136
3．Models with and without the effect of money 141
4．A synthesis 149
5．Monetary policy：essential or non-essential？ 154
CHAPTER Ⅷ The Value of Money 160
1．The value of money and the price level 160
2．The quantity theory 163
3．The＇encounter＇theory 167
4．The cost theory 169
5．The government＇s price policy 174
CHAPTER Ⅸ The Wage Level in the Model 178
1．Wage problems 178
2．The effect of wages on employment 181
3．What determines the wage level？ 187
4．An incomes policy？ 192
CHAPTER Ⅹ Economic Growth 197
1．The topicality of growth theory 197
2．The classical growth function and steady growth 199
3．The Neo-Keynesian growth equation 205
4．Stability and the growth paradox 209
5．Growth and structural changes 212
6．The dangers of growth 216
CHAPTER Ⅺ Fitting the Jigsaw Together 223
1．Ten equations 223
2．Some of the model＇s properties 226
3．What do we do with the model？ 231
4．Planning 236
5．quantification 241
CHAPTER Ⅻ Economic Steersmanship 248
1．The combination of policy instruments 248
2．Equilibrium policy and politics 252
3．The wrongheaded opposition 256
4．An economic policy for the coming decades 261
EPILOGUE 267
A Short Glossary 269
Note on Further Reading 273
Index of names 275