3
HarrodinhisstudyonTheTradeCycle。ThereMrHarrodexpectsanincrease；hereconstancyoradecreaseseemstobeindicated。SinceMrHarrodgivesgroundsforhisconclusionswhichareprimafacieplausible，thisisafurtherreasonforanattempttoputtheissuetoamoredecisivestatisticaltest。[236]
Tostatethecasemoreexactly，wehavefivefactorswhichfluctuateintheshortperiodwiththelevelofoutput:1Thepriceofwage-goodsrelativetothepriceoftheproduct；
2Thepriceofgoodsboughtfromoutsidethesystemrelativelytomoneywages；
3Themarginalwagecost；
4ThemarginalusercostIattachimportancetoincludingthisfactorbecauseithelpstobridgethediscontinuitybetweenanincreaseofoutputuptoshort-periodcapacityandanincreaseofoutputinvolvinganincreasebeyondthecapacityassumedinshort-periodconditions；and5Thedegreeoftheimperfectionofcompetition。Anditappearsthat，forreasonswhicharenotyetclear，thesefactorstakeninconjunctionhavenosignificantinfluenceonthedistributionbetweenlabourandcapitaloftheincomeresultingfromtheoutput。Whateveramorecompleteinquiryintotheproblemmaybringforth，itisevidentthatMrDunlop，MrTarshisandDrKaleckihavegivenusmuchtothinkabout，andhaveseriouslyshakenthefundamentalassumptionsonwhichtheshort-periodtheoryofdistributionhasbeenbasedhitherto；¾；itseemsthatforpracticalpurposesadifferentsetofsimplificationsfromthoseadoptedhithertoarepreferable。MeanwhileIamcomfortedbythefactthattheirconclusionstendtoconfirmtheideathatthecausesofshort-periodfluctuationaretobefoundinchangesinthedemandforlabour，andnotinchangesinitsreal-supplyprice；thoughIcomplainalittlethatIinparticularshouldbecriticisedforconcedingalittletotheotherviewbyadmittingthat，whenthechangesineffectivedemandtowhichImyselfattachimportancehavebroughtaboutachangeinthelevelofoutput，thereal-supplypriceforlabourwouldinfactchangeinthedirectionassumedbythetheoryIamopposing¾；asifIwasthe[Page412]THE
GENERALTHEORYOFEMPLOYMENT
firsttohaveentertainedthefifty-year-oldgeneralisationthat，trendeliminated，increasingoutputisusuallyassociatedwithafallingrealwage。
Iurge，nevertheless，thatweshouldnotbetoohastyinourrevisions，andthatfurtherstatisticalenquiryisnecessarybeforewehaveafirmfoundationoffactonwhichtoreconstructourtheoryoftheshortperiod。
Inparticularweneedtoknow:iHowtherealhourlywagechangesintheshortperiod，notmerelyinrelationtothemoneywage，butinrelationtothepercentagewhichactualoutputbearstocapacityoutput；
iiHowthepurchasingpoweroftheindustrialmoneywageintermsofitsownproductchangeswhenoutputchanges；andiiiHowgrossprofitperunitofoutputchangesawhenmoneycostschange，andbwhenoutputchanges。J。M。KEYNES
IndexA-K[Page413]
INDEXA-K
[toIndexL-Z]
Abstinence，see[Saving]
Accumulationinawealthycommunity，[219-20]，seealso[
Capitalaccumulation]
\'Administeredprices\'，[268]，[270]
AggregateInvestment，Saving，Supplyfunction，Demandfunction，see[
Investment]，[Saving]，[Supplyfunction]，[Demandfunction]
Agricultureandthetradecycle，[314]，[329-32]
Armstrong，Clement，[347]
Australia，wagepolicyin，[269-70
]
Austrianschool，[76]，[329]
AuthoritarianStates，[380]，[
381]
Availableresourcesandactualemployment，[4]
Balanceoftradeandchangesinmoney-wages，[262-3]andMercantilism，[333]，[335-9
]，[348]andfuturepolicy，[382]Bankcharges，[196]
Bankdeposits，[81]，[167n]，[194-5]
Bankmoney，innineteenthcentury，[308]andGesell\'sproposals，[357-8
]Bankrate，\'effectiveness\'of；[206]thetechnique，[339]Bankingsystem¾；andcreationofcredit，[81-5]andrateofinterest，[208]
andfutureofinvestment，[378]
itsconditionsoflending，[200]
asuggestedreformin，[205-6]
andwagepolicy，[267]
Seealso[Money，quantityof]；and[Monetarypolicy]Barbon，N。，[359]
Basicsupplementarycost，see[Supplementarycost]
Bavaria，Sovietcabinetin，andGesell，[354
]
\'Bearishness，stateof\'，inTreatiseonMoney，[173-4]
\'Bears\'andrateofinterest，[170-1]
Bentham，J。，on\'forcedsaving\'，[80]；onusury，[352-3]Bö；hm-Bawerk，E。von，[176n]，[183n]，[214n]
BonarLaw，A。，[350]
Bondprices，[199-200
]，[206]
Booth，Charles，[365]
\'Bottle-necks\'，[300-1
]，[322]
Bowley，A。，[395]，[398]，[402]
Brokeragecharges，[160]
Bü；chi，Dr，[354]
Budgetarydeficit，[98]，[128-30
]
BuenosAires，Gesell\'sactivitiesin，[354
]
Buildingsocieties，[101]
Bull，John，oldnineteenth-centurysayingabout，[309n]
\'Bull-bearposition\'intheTreatiseonMoney，[169n]
\'Bulls\'，andtherateofinterest，[170-1
]
Business-deposits，[195]
Business-motivetoliquidity，[195-6]，see[Liquidity]
Butler，H。B。，[349n]
Cairncross，A。K。，[364]
Capital¾；andAustrianschool，[76]，[329]
costofproductionof；[315]，[317]
demandcurvefor，inclassicaltheory，[175-85
]
diminishingreturnsfrom，[42]，[81]，[114]，[289]，[305-6
]
durabilityof；andthetradecycle，[318]
\'productivity\'of；[213-17]
scarcityof；[221]，[375-6]
stockof¾；assumedgiven，[245]；
itsmeasure，[37]，[43]；
andincome，[52-4]，[56]；
andinvestment，[62-3]；
andusercost，[66]；
anddepreciation，[99-106]；
andexpectedyield，[147]；
andrateofinterest，[217-20]；
andtradecycle，[315]，[317-18]
supplypriceof；[135]，[248]，[252]
unforeseenincreaseinoutputof；[122-5
]Capital，marginalefficiencyof¾；defined，[135-6]
introduced，[28]，[31]
discussed，[135-64]
anindependentvariable，[245-9]
andcommoditystandards，[224-5]
incrises，[207]
andpriceofequities，[151]andn，andrateofinterest，[111-12]，[136-7
]，[142-6]，[165]，[218-20
]
andmoney-andown-ratesofinterest，[222-3
]，[228]
andinterestpolicy，[375]
andliquidity-preference，[170]
andmoney，[173-4]，[224-5
]，[234]，[298]
andpublicworks，[120]
andstability，[250-1]，[253]
[Page414]INDEX
Capitalcont。¾；andtheState，[164]，[220]
andthetradecycle，[313-20]，[323-4
]
andwages，[232-3]，[260-5
]，[269-70]
innineteenthcentury，[307-8]
to-day，[308-9]
infuture，[220-1]，[375]
ineconomicdoctrine，[139-41]
andFisher\'stheory，[140-2]
andGesell\'stheory，[355-6]
Marshallon，[139-40]
invonMises，HayekandRobbins，[192-3
]
Pigouand，[190]，[274]，[278]
andRicardo\'stheory，[192]
andusurylaws，[351-2]Capital，scheduleofmarginalefficiencyof¾；defined，[136]
itssignificance，[145-6]，[184]
andinvestment，[165]，[375]
andclassicaltheory，[178]
See[Investmentdemandschedule]Capitalaccumulation¾；andpropensitytoconsume，[112]，[349]
andliquiditypremiumonland，[241-2]
inwealthycommunity，[31]，[219-20]，[335]，[348]
itsfuture，[372-3]，[375]
andGesell\'stheory，[355]
Hobsonon，[367-8]
Marshallon，[242]
andMercantilistthought，[344]\'Capitalconsumption\'，[76]，[329
]
Capital，fixed¾；andinvestment，[75]
andthetradecycle，[319]
andusercost，[73]Capitalformation，grossandnet，inUnitedStates，Kuznetson，[102-4]
Capital，instrumental，characteristicsof，[226]
Capital，liquid，andexpectation，[50
]andusercost，[73]
Hawtreyon，[75-6]Capitalprofits，taxeson，[94-5
]
Capital，working¾；andexpectation，[49-50]
andinvestrnent，[75]
andreductionofwages，[262]
andprimecost，[273n]
andthetradecycle，[318-19]Capitalism，futuretrendsin，[221]，[309]，[372-83]
Carrying-cost，defined，[225]discussed，[225-8]，[240]
andland，[241]
andmoney，[233-4]，[237-9
]
andsurplusstocks，[317-18]Gesellon，[355-7]Carver，T。N。，oninterest，[176]andnGary，J。，[359]
Cash，see[Money]
Cassel，G。，oninterest，[176]，[182]，[188]Pigouon，[188]Centralbank，[206]，[235]，seealso[Bankingsystem]，[Monetarypolicy]
Chalmers，[369]
Child，J。，[342]
Clark，C。G。，[409n]；oninvestmentinGreatBritain，[102]，[386]
Classicaleconomists，[3n]
Classicaltheory，itslimitations，[
378]postulatesof；[4-22]，[34]，[304]
andmarginalefficiencyofcapital，[139-41
]
andeffectivedemand，[32-4]
andemployment，[3]，[112]，[284]
andinterestandinvestment，[93]，[165-6
]，[175-93]，[351]，[356]
andMercantilism，[333-5]，[339]，[348-9
]
andreductionofmoney-wages，[257-60]
Hobsonon，[366]\'Closedshop\'，[56]
Closedsystem，[11]，[265]wagepolicyin，[270]Commodityexchanges，[160n]。
Commodity-ratesofinterest，see[Interest，ownratesof]
Competition¾；imperfect，[5]，[406-11]
thedegreeof，[245]
theMercantilistsonexcessive，[345-6]
andclassicaltheory，[29]，[379]Confidence¾；theStateof；[148-9]，[161]，[248]
andpublicworks，[120]
andreductionofmoney-wages，[264]
inthenineteenthcentury，[307]
andthetradecycle，[317]
andHobson\'stheory，[367]Consume，propensityto¾；defined，[90]
theobjectivefactors，[89-106]
thesubjectivefactors，[107-12]
itsplaceintheGeneralTheory，[27-31
]，[245]，[247]，[249]
andpropensitytosave，[65]
andwindfallchangesincapitalvalues，[92]
andaccumulation，[335]，[337]，[373]，[375]
andemployment，[211]
andemploymentinwealthycommunity，[31]，[219]
[Page415]INDEX
Consume，propensityto¾；cont。andemploymentfunction，[281]
andincometax，[94]，[373]
andrateofinterest，[93]，[178]，[184]
andthetradecycle，[313-14]，[319-21
]，[324-9]
andmoney-wages，[239]，[260]，[262-3
]
innineteenthcentury，[307]
andfuturepolicy，[373]，[375]
andclassicaltheoryofinterest，[178]，[184]
andPigou，[279]
andHobson，[370]Consume，marginalpropensityto¾；defined，[115]
discussed，[113-31]
andthemultiplier，[115]
andstability，[248]，[250-2]
andreductionofmoney-wages，[261-2]
inwealthycommunity，[31]，[349]Consumption¾；defined，[61]
intheGeneralTheory，[27]，[248]，[250-2
]
andnatureofcapital，[214-17]
andpropensitytoconsume，[89-90]，[92
]，[96]，[98]
and\'soundfinance\'，[104-6]
andrateofinterest，[166]
andNewDeal，[332]
andsavingandinvestment，[61-5]，[74
]，[82]
andnatureofsaving，[21]，[64-5]，[
210-13]
andthetradecycle，[327]，[330]，[332]
andchangesinmoney-wages，[261-3]
andRobertson\'sdefinitionofincome，[78]
Hobsonon，[367-9]Consumption-capital，[226]
Consumption-goods¾；Pigouon，[273]
theirperiodofproduction，[287]Consumption，under-，see[Under-consumption]
ConventionandStockExchangevaluations，[
152-3]andtherateofinterest，[203-4
]Cost¾；carrying，see[Carryingcost]
factor，see[Factorcost]
longperiod，[68-9]
marginal，[294-6]，[302-3
]
prime，see[Primecost]
supplementary，see[Supplementarycost]
basicsupplementary，see[Supplementarycost]
currentsupplementary，see[Supplementarycost]
user，see[Usercost]
wage，see[Wagecost]Costofbringinglenderandborrowertogether，[208]，[219]，[309]
Cost-unit，defined，[302]，[303]，[309
]，[328]
Costs，levelofdomestic，andforeigninvestment，[336-8]
Credit，see[Money，quantityof]thestateof，[158]Crises，andthetradecycle，[314-20
]financial，inEuropeandtheUnitedStates，[207]，[329
]Curtius，[353n]
Cycles，Trade，see[Tradecycles]，[Fluctuations]
Cyclicalmovementsandazerorateofinterest，[218]
Davenant，C。，[345]
Deathduties，[95]，[372-3
]
Debtsandmoney，thedistinctionbetween，[167n]burdenof；andchangesinmoney-wages，[264]，[268]，[
271]Childon，[342]Deficit，budgetary，[98]，[128-30
]
Deflation，apparentasymmetrybetweeninflationand，[291]andreductionofstocks，[331-2
]Demand¾；
Demandcurve，see[Demandschedule]
Demand，aggregate，[104]，[123]，[258]，[279]
Demand，effectivedefined，[25]，[55]
theprincipleof，[23-34]
anddemandschedules，[259]
elasticityof，[305]
andemployment，[260-1]
andemploymentfunction，[280-91]
andentrepreneurs，[380-1]
andexpectation，[147]
andfinancialprudence，[100]
andincome，[55]
inlongrun，[307]
andprices，[209]，[295-305]
andprocessesofproduction，[215]
andindividualsaving，[211-13]
andstability，[251-2]
andusercost，[69n]
inwealthycommunities，[31]，[220]
inclassicaleconomics，[25-6]，[32-4
]
andGesell，[358]
andHawtrey\'stheory，[76]
[Page416]INDEX
Demand，effectivecont。Malthuson，[32]，[362-4]
andMercantilistthought，[358]
andTreatiseonMoney，[78-9]Demandfunction，theaggregate¾；defined，[25]；[32]，[40]，[55]，[77]，[89]Demandfunctionforlabour，thereal，see[Labour，Pigou\'srealdemandfunctionfor]
Demandscheduleforemploymentinclassicaltheory，[6]forinvestment，see[Investmentdemandschedule]Demandschedules，thenatureandassumptionsof；[258-60]，[281]
Deposit，bank，see[Bankdeposits]
Depositinterest，[196]
Depreciation¾；andusercost，[69]
onhouses，[99-102]
intheUnitedStates，[102-3]Diminishingreturns¾；inshortperiod，[81]，[83]，[91-2
]，[114]，[121-2]，[289]，[302]，[305-6
]，[328]andchoiceofwage-unit，[42]，[299-300
]Discount，rateof，[135]，[225]
Disinvestment，[67]，[75]，[105]，[318]，[329]andusercost，[67]Dis-saving，[82]，seealso[Saving，negative]
Disutilityoflabour，ofemployment，marginal，see[Labour，marginaldisutilityof]
Dividend，National，andchoiceofunits，[379]Pigouon，[5n]，[59]
Seealso[Income]Divisionoflabour，international，[333
]，[338]，[381]
Douglas，C。H。，[32]，[370-1
]
Dunlop，J。G。，[394-410
]
Economics，thedivisionsof，[292-4
]Classical，see[Classicaltheory]Edgeworth，F。Y。，[3n]，[19]，[32]，[186]，[410]
Effectivedemand，see[Demand，effective]
Efficiency，marginal，ofcapital，see[
Capital，marginalefficiencyof]
Efficiencyandlengthofprocesses，[214-17
]
Egypt，Ancient，wealthof，[131]
Elasticityofeffectivedemand，see[
Demand，effective]ofemployment，see[Employment]
ofmoney-wages，see[Wages，money]
ofoutput，see[Output，elasticityof]
ofproduction，see[Production]
ofproductionofmoney，see[Money]
ofsubstitution，see[Substitution]
ofsubstitutionofmoney，see[Money]Employment¾；theoryof；summarised，[27-32]，[247-9]；
restated，[245-54]
adependentvariable，[245-7]
marginaldisutilityof，see[Labour，marginaldisutilityof]
itsunits，[41]
andaggregatedemandandsupplyfunctions，[48]，[89]
andemploymentfunction，[89]，[281]，[286]
andFreeTrade，[336]，[382]
andrateofinterest，[217-20]，[222]，[242-3]，[349]
andinvestment，[98]
andquantityofmoney，[171]
andthemultiplier，[113-14]，[122]
andprices，[295-6]，[298]
andsavingandinvestment，[77-8]
andindividualsaving，[211]
itsstability，[250-4]
andthetradecycle，[97]，[315-16]，[318]，[320]，[325]，[327-8]
andmoney-wages，[257-71]
andrigidrealwage，[269-70]
inpoorandwealthycommunities，[31]，[219-20
]
innineteenthcentury，[307-8]
theproblemto-day，[308-9]
inclassicaltheory，[3-7]，[185]，[
257-60]
Pigouon，[7]，[260]，[272-9]Employment，elasticityof，[243
]，[284]，[286-8]forindustryasawhole，defined，[282]
forasingleindustry，[282]Employment，full¾；defined，[16]，[303]
itsrarity，[250-2]
andfuturepolicy，[372-3]，[375]，[
377-9]，[381-2
]
assumedinclassicaltheory，[12]，[191]
andequilibrium，[253]，[289-91]
andtherateofinterest，[112]，[203-4
]，[327]
andown-ratesofinterest，[236]
andthequantitytheoryofmoney，[209]
intheabsenceofmoney，[235]
and\'forcedsaving\'，[80]
and\'over-investment\'，[320-3]
andunder-consumption，[325-6]
andanapparentasymmetry，[304]
andHobson\'stheory，[367]
andwages，[266]，[271]，[301-2]
[Page417]INDEX
Employmentfunction，[89-90
]，[246]，[280-91]defined，[280]
Seealso[Employment，elasticityof]Employmentmultiplier，defined，[115
]，[248]，[273]
Employment，primary，defined，[113
]，[115-16]，[118]，[277]
Employment，secondary，[277]
Employment，under-，[289]，[324
]，[365]，[381]。Seealso[Unemployment]Enterprise¾；distinguishedfromspeculation，[158-9
]futureof，[225]，[374]psychologyof，[150-1]，[161-3
]Entrepreneurs¾；incomeof，see[Income]
andelasticityofemployment，[257-8]
andfullemployment，[289-90]
andproductionofmoney，[230]
andazerorateofinterest，[217-18]
andreductionofmoney-wages，[261-2]，[264]
anddefinitionofmarginalwagecost，[273]
andtheStockExchange，[151]，[316n]
andfuturepolicy，[376-7]Equilibrium¾；andbankrate，[339]
andemployment，[249]
andelasticityofemployment，[287-8]
andfullemployment，[289-91]
andfluctuatingexchanges，[270]
andtherateofinterest，[217-20]，[242-4
]
ofmoneyandassets，[227]
ofmoneyandinterest，[199-201]
andprices，[64]Equilibrium，long-periodandsupplyprice，[68-9]
andtherateofinterest，[180]，[190-1
]Equities，ownershipof，dissociatedfrommanagement，[153]andtheStockExchange，[151n]，[158]，[319]Euclideangeometers，classicaleconomistscomparedwith，[16]
Europe，post-wartraderestrictionsin，[338]
Exchanges¾；fluctuating，andwagepolicy，[270]
rigid，andBritishforeigninvestment，[339]Expectation，[46-51
]，[147-64]，[293-4
]andtheproductivityofcapital，[138]
andpresentandfutureconsumption，[210]
ofchangesinpresentandfutureincome，[95]
andliquidity，[197-9]，[201-2
]，[205]
andchangesinvalueofmoneyandoutput，[141-2
]，[237-9]
andquantityofmoney，[298]
andthetradecycle，[315]，[320-2]，[327]
andmoney-wages，[69n]，[238]，[263-5
]，[305]
offutureyield，[136]，[147]，[247]
long-term，defined，[47-8]；[51]，[147-64
]，[246]
short-term，defined，[47-8]；[50-1
]，[148]FableoftheBees，Mandeville\'s，[106
]，[359-62]
Fabricant，S。，[388]
Factorcost¾；defined，[23]，[53]，[67]
average，[69-70]
marginal，[55]，[67]，[69-75]，[272n]Federalreservesystem，[327]
Financialprovision，see[
Supplementarycost]
Financialprudence，[100-1
]，[105]，[109]andliquidity，[155]andrecoveryintheUnitedStates，[100]，[128]Fiscalpolicy¾；andthepropensitytoconsume，[94-5
]
andwagepolicy，[263]Fisher，Irving，[140-3
]，[355]，[357]
\'Flightfromthecurrency\'，[207]，[306]，[329]
Fluctuations，[97]，[250-4
]，[307]，see[Tradecycles]
Flux，A。W。，onInterest，[176]
\'Forcedfrugality\'，Benthamon，[80
]
Forcedsaving，see[Saving]
Foreigninvestment，see[Investment，foreign]
Foreigntradeinclassicaleconomics，[
333]infuture，[382]
andmercantilism，[333-50]
andthemultiplier，[120]Fortrey，S。，[344]，[359]
Foxwell，H。S。，[396]，[400]
FreeTrade，[333-4
]，[350]
Hobsonon，[368]
Frictionalunemployment，see[Unemployment，frictional]
Fullemployment，see[Employment，full]
Fullarton，J。，OntheRegulationofCurrencies，[364n]
\'Future\'and\'spot\'prices，[222-4]
George，Henry，[354]，[355]，[365]
Gesell，Silvio，[32]，[353-8
]，[375]，[379]
Gold，suitabilityof，asmoney，[236]mining，[130-1]，[200]，[230-1
]
own-rateofinterestof，[229]Goldstandard，andtheproductionofmoney，[230-1]andbalanceoftrade，[337-8]，[349]
[Page418]INDEX
Goldstandard，cont。andtheMercantilists，[348-9]
andwar，[381-2]Government，see[State]
GreatBritain¾；CentralBankcontrolin，[206]
employmentandtherateofinterestin，[219-20
]
fullemploymentin，[323-4]
employmentandforeigntradeinpre-waryearsin，[337]，[348]
employmentandbankratein，[339]
FreeTradeinnineteenthcenturyin，[338]
redistributionofincomein，[372]
Clarke\'sestimateofinvestmentin，[102]
post-warinvestmentandsinkingfundsin，[101-2
]
contemporarymercantilismin，[333]
opinionandthemonetarysystemin，[172]
themultiplierin，[122]
realandmoneywagesin，[276]Hales，DiscourseoftheCommonWeal，[345]
Hansen，Alvin，EconomicReconstruction，[193]
Harrod，R。F。，[180n]，[411]
HarvestsandTradecycle，[320]
Hawtrey，R。G。，[51n]，[72n]，[75-6]，[79n]
Hayek，F。von，[39n]，[59-60
]，[79]，[80]，[192]
Heckscher，E。，Mercantilism，[341-50
]，[358]
Hoard，propensityto，[208-9
]，see[Liquidityfunction]
Hoardingandliquidity，[160-1
]，[174]
Hoards，theMercantilistson，[344-5
]
Hobson，J。A。，[59n]，[364-71
]
Hume，essayOnMoney，[343n]
Imports，restrictionof，[338-9
]
Improvement，motiveof，[109]，see[
Consume，propensityto]
Income¾；
Income，aggregate¾；defined，[53-4]
preliminarydefinition，[23-4]
definitiondiscussed，[52-61]
andsavingsandinvestment，[63]，[74]
andusercost，[67]
Robertson\'sdefinition，[78-9]
Marshall\'sdefinition，[59]
inTreatiseonMoney，[60]，[77]
andpropensitytoconsume，[91-2]，[94
]，[96-7]，[248]
itsdistribution，[321]，[372-5]
andemployment，[28]，[258]
andinvestment，[117]，[180-2]，[248
]
andclassicaltheoryofinterest，[178-9
]
andleisure，to-day，[326]
andliquidity，[171-2]，[196-7
]，[199]
andmoneyinlongrun，[306-9]
andquantitytheoryofmoney，[208-9]
statisticsof，andthemultiplier，[127-8
]
andordinarysupplyanddemandcurves，[281-2
]
adependentvariable，[245-7]
andHobson\'stheory，[369]Income，aggregatenetdefined，[57]
discussed，[57-61]
andpropensitytoconsume，[92]，[98]
anddefinitionofinvestment，[75]Incomeofentrepreneursdefined，[53]
discussed，[53-4]
andelasticityofemployment，[287]
inTreatiseonMoney，[60-1]Income，net，ofentrepreneursdefined，[57]
discussed，[56-8]，[59]，[92]
andusercost，[68-90]Income，realandconsumption，[91-2]，[251
]
andemployment，[28]，[114]
andchangeinmoney-wages，[262-3]Income-deposits，[194-5
]
Income-motive，see[Liquidity-preference]
Incometax¾；andpropensitytoconsume，[94]
andinequalityofwealth，[372]
andliquidity，[309]Income-velocityofmoney，see[Money，income-velocityof]
India，liquidityandwealthin，[337]
Individualism，virtuesof，[379-80
]
Industryasawholedemandschedulesand，[258-9]
andemploymentfunction，[280]，[285]
theplaceineconomicsofthestudyof，[293]Infantindustries，[339]
Inflation¾；andtherateofinterest，[202]
apparentasymmetrywithdeflation，[285]
post-war，inCentralEurope，[207]
absolute，[305]
semi-，defined，[305]
true，defined，[119]，[303]Inheritance，inequalitiesof，[374]
[Page419]INDEX
Interest，rateof¾；defined，[167]；[222]
theoryof，[165-74]
propertiesof，[222-44]
anindependentvariable，[245-9]
andaccumulation，[219-20]，[335-7
]，[349]
andpropensitytoconsume，[93-5]，[110-12
]
complexofrates，[28]，[137n]，[143]，[167n]，[168-9]，[205-6
]
andmarginalefficiencyofcapital，[28]，[136-7
]，[143]，[145-6]，[220-1
]
andconfidence，[149]
incrises，[207]
andemployment，[288]，[290]
andpriceofequities，[151n]
andforeigntrade，[339]，[348]
andgoldmining，[130]
andhoarding，[174]
andliquidity，[197-209]
andquantityofmoney，[79]，[167-8]，[171-3]，[197-209
]，[298]，[306-9]
andvalueofmoney，[142-3]
obstaclestoalow，[202]，[207-8]，[
309]
andmonetarypolicy，[205-8]
andfuturepolicy，[375-6]
apsychologicalandconventionalphenomenon，[202-4
]
andprocessesofproduction，[214-17]
andpublicworks，[119-20]
andindividualsaving，[210-11]
andstability，[250-3]
andthetradecycle，[315-16]，[320-9
]
andusercost，[68]，[70]
andmoney-wages，[260-6]，[269-70
]
inwealthycommunities，[31]，[219-21
]
innineteenthcentury，[307-8]
to-day，[308-9]
inclassicaltheory，[93]，[165-6]，[
175-93]，[351]
Casselon，[176]
Carveron，[176]
Fluxon，[176]
Gesellon，[355-8]
Hayekon，[192]
andHobson\'stheory，[367]，[369-70]
Lockeon，[342-4]
Marshallon，[175-6]，[186-9
]
theMercantilistson，[340-4]，[347]
vonMiseson，[192-3]
Pigouon，[186]，[188-90]，[274]，[
278]
Ricardoon，[190-2]
Robbinson，[192]
Robertsonon，[180n]，[187n]
Taussigon，[176]
andusurylaws，[351-3]Interest，equilibriumrateof，[183]，[325]
Interest，long-termrateofandliquidity，[202]
andmonetarypolicy，[202-4]，[206-7
]
andwagepolicy，[266]Interest，\'natural\'rateof，[183]，[242-4]Wicksell\'s，[183n]，[242]Interest，\'neutral\'rateof，[183]adefinition，[243]Interest，\'optimum\'rateof，defined，[243]
Interest，own-rateof，defined，[223]；[223-31]，[235]，[236]，[240
]
Interest，\'pure\'rateof，[68
]，[145]，[182]，[208]，[221]
Interest，short-termrateof，andpolicy，[203]，[208]
Interest，compound，[163]
InternationalLabourOffice，[349n]
Internationaldivisionoflabour，[333]，[338]，[387]
Internationaltradeinclassicaleconomics，[333]
futureof，[382]
andMercantilism，[333-50]
andmultiplier，[120]\'Inventories\'，[332]，[389]
Invest，inducementto，[27]，[
137]，[239]，[335]，[347-8]，[351]，[353]，[358]
Investment¾；
Investment，aggregateorcurrentdefined，[62]
foreshadowed，[54]
discussed，[60-4]
insummaryofGeneralTheory，[27-31]，[248-53]
andmarginalefficiencyofcapital，[136-7
]，[147]，[149]
andpropensitytoconsume，[90]，[98-106
]，[110]
andemployment，[260-1]，[281]
andelasticityofemployment，[287-8]
andexpectation，[149-51]
unexpectedincreasein，[123-5]
itsfuture，[375-7]
andratesofinterest，[236]
andliquidity-premiumonland，[241-2]
andthemultiplier，[126-8]
andrisk，[144-5]
andindividualsaving，[210-11]
andstability，[250-3]
andtheState，[106]，[164]，[220-1
]，[320]，[325]，[335]，[349]，[351]，[376-7
]，[380]
inBritishandAmericanStatistics，[102-4
]，[386-93]
[Page420]INDEX
Investmentcont。andthetradecycle，[314-32]
andusercost，[66]
andmoney-wages，[260-5]
andclassicaltheory，[180-5]
Fisheron，[140-2]
Marshallon，[139-40]，[178]，[186-8
]
andMercantilism，[335-40]
Pigouon，[275]，[279]Investment，savingand，[60-5
]，[74-85]，[183-5
]，[328]andclassicalschool，[177-9]Investmentdemandschedule，defined，[136]andpropensitytoconsume，[110-11
]
andexpectations，[147]，[149]
andrateofinterest，[136-7]
andvalueofmoney，[142]
andclassicaltheoryofinterest，[178]，[181-3
]
Seealso[Capital，scheduleofmarginalefficiencyof]Investment，foreignandaccumulation，[335-6]，[339
]，[348-9]
inAustralia，[270]
itsfuture，[381-2]Investment，\'full\'，[324]
Investment，home，andunemployment，Kahnon，[113]Investment-income，Hayekon，[59]
Investmentmarkets，see[StockExchange]
Investment，misdirected，[321
]，[323]，[327]
Investmentmultiplier¾；defined，[115]；[248]andquantityofmoney，[298-9]inUnitedStates，[127]Investment，negative，see[Disinvestment]
Investment，negativenet，[329
]
Investment，netdefined[63]
discussed，[62-5]
itsvagueness，[60]
andconsumption，[98]，[326]
andthemultiplier，[113]Investment，over-，[320-4
]，[370]
Investment，public，[106]，[163-4
]，seealso[State]
Investors，professional，[154-64
]，[316]
Involuntaryunemployment，defined，[22]，see[Unemployment，involuntary]
Italy，wagepolicyin，[267]
Jevons，W。S。，onthetradecycle，[329-32
]
Jobber\'s\'turn\'，[159]
Johnson，Dr，andMandeville\'sFableoftheBees，[359]
Kahn，R。F。，[113]，[115]，[119]，[
121]，[400]，[405]
Kalecki，DrM。，[395]，[403]，[405
]，[409n]，[410]，[411]
Keynes，J。M。，[79n]EssaysinBiography，[362]
TreatiseonMoney，[49]，[60]，[70]，[74]，[77-9
]，[124]，[151n]，[167n]，[169n]，[173
]，[194-5]，[242]，[287n]，[319n]
TreatiseonProbability，[148n]
inTheNationandtheAthenaeumonProtection，[334]King，W。I。，[409n]
Knight，F。H。，onInterest，[176n]
Kuznets，S。S。，[102-4
]，[386-93]，[409n]
IndexL-ZINDEXL-Z
[toIndexA-K]
Labour¾；Pigou\'srealdemandfunctionfor，[272-3
]，[275]，[278-9]
elasticityofdemandfor，[258-9]
disutilityof；[6]，[128]，[245]
marginaldisutilityof，[5]，[28]，[128]，[284]，[291]
assolefactorofproduction，[213-15]
andfutureofinterest，[375]
internationaldivisionof，[333]，[338]，[381]
andproductionofmoney，[230-2]
marginalproductof，[5]，[83]，[257]
supplyof¾；notfunctionofrealwageonly，[8]；andtradecycle，[326]Labourunits，defined，[41-2
]，[91]，[114]，[282]
LabourGovernmentandenterprise，[
162]
Laffenas，LesTré；sorsetrichessespourmettrel\'EstatenSplendeur，[358]
Laissez-faire¾；andemployment，[217-20]
andforeigntrade，[335]，[339]，[348]
andinvestment，[159]
andMercantilism，[348]，[350]
andmoney，[129]，[235]
andwagepolicy，[269]
andwar，[348]，[381-2]
Gesellon，[355]Land，andaccumulation，[241-2
]comparedtomoneybyLocke，[343]
nationalisation，[355n]，[358]Leisure，[326]
Liquidcapitalgoods，see[
Capital]and[Stocks]
Liquidity¾；Incentivesto，[194-209]
itsnature，[240-1]
attitudetoitanultimatevariable，[247-8
]
andthepropensitytoconsume，[108]
and\'soundfinance\'，[155]，[159-60]
andmoney-rateofinterest，[234-5]
[Page421]INDEX
Liquiditycont。andland，[241-2]
innon-monetaryeconomy，[240]
andindividualsaving，[212-13]
andwage-unit，[232]
andgrowthofwealthinIndia，[337]Liquidityofmoneyandcarrying-costs，[233-4]，[
237]
andquantityofmoney，[241n]，[305]Liquidity-functiondefined，[168]
itsshape，[171-2]
itsnature，[197-200]，[205]
incrises，[207]
andemployment，[248-9]
andquantitytheoryofmoney，[208-9]
andquantityofmoney，[298]
andmoney-wages，[172]，[263-4]Liquidity-preferencedefined，[166]，[168]
andrateofinterest，[166-74]，[180-1
]，[207]
itsthreedivisions，[170]
transactions-motive，defined，[170]，[170-2
]，[174]，[182]；
reclassified，[195]
precautionary-motive，defined，[170]，[170-2
]，[196]
speculative-motive，defined，[170]，[170-4
]
income-motive，defined，[195]
business-motive，defined，[195-6]
andexpectation，[169]
andhoarding，[174]
andforeigninvestment，[336]
andpublicworks，[120]
andthetradecycle，[313]，[316]，[328]
measuredinwage-units，[172]
andwealthinMiddleAges，[351]
inlongperiod，[306]
innineteenthcentury，[308]
to-day，[309]
andGesell\'stheory，[356]
andLockeonInterest，[343]
andMercantilistthought，[341]，[344]
andRicardoonInterest，[191]
inTreatiseonMoney，[173-4]Liquidity-preference，scheduleof，see[Liquidity-function]
Liquidity-premiumdefined，[226]
ofmoneyandotherassets，[227-9]
ofmoney，[233n]
ofmoneyandGesell\'stheory，[357-8]
ofland，[241-2]
ofstandardofvalue，[237-40]Loanexpenditure，[128-30
]，[331-2]，seealso[State]
Localauthorities，sinkingfundsof，[101]
Locke，J。，[344n]ALettertoaFriendconcerningUsury，[344]
SomeConsiderationsoftheConsequencesoftheLoweringofInterestandRaisingtheValueofMoney，[342]andn，[343]LondonStockExchange，[159-60
]
Long-periodcost，andusercost，[68-9
]
Longperiod，price-levelin，withstablewagepolicy，[270-1]
Long-termbonds，andliquidity-premiumonland，[241]andchangeinwage-unit，[263]
regulationofpriceof，bycentralbank，[206]Long-termexpectation，see[
Expectation，long-term]
Loss，windfall，defined，[57-8
]，[228]
Maintenance，andusercost，[66]，[69-70
]
Malthus，T。R。，oneffectivedemand，[
32]，[362-4]，[369]，[371]PrinciplesofPoliticalEconomy，[363]
LetterfromRicardo，[43]
LetterstoRicardo，[362-3]Malynes，Gerard，LexMercatoriaandMaintenanceofFreeTrade，[342]，[345-6
]
Managementandownership，separationof，[150-1]，[153]
Management，monetary，see[
Monetarypolicy]
\'ManchesterSystem\'，[379]
Mandeville，Bernard，[371]FableoftheBees，[106]，[359-62
]Marginalcost，see[Cost，marginal]disutilityofemploymentoflabour，see[Labour]
efficiencyofcapital，see[Capital，marginalefficiencyof]
factorcost，see[Factorcost]
multiplier，see[Multiplier]
proceeds，see[Proceeds]
productoflabour，see[Labour]
productivity，see[Productivity]
propensitytoconsume，see[Consume，marginalpropensityto]
Usercost，see[Usercost]
Wagecost，see[Wagecost]Marshall，Alfred，[3n]，[19]，[32]，[37]，[56]，[59]，[139]，[175]，[176n]，[177
]，[184]，[334]，[395-9
]andMary，EconomicsofIndustry，[19n]，[20n]，[21]
[Page422]INDEX
Marshallcont。IndustryandTrade，[334n]
MoneyCreditandCommerce，[334n]
OfficialPapers，[395n]，[397n]
PureTheoryofDomesticValues，[19]
PrinciplesofEconomics，[72]，[139-40
]，[175-6]，[186-90
]，[214n]，[242]，[334n]，[395n]，[398
]Marx，Karl，[3n]，[32]，[355]
Mathematicaleconomics，[275]，[297-8]
Meade，J。E。，[401]，[403]
Mercantilism，[334-51
]，[358-9]
Midas，thefateof，analogyof，[219
]
Mill，J。S。，[3n]，[19-20
]PrinciplesofPoliticalEconomy，[18]，[364n]Mises，L。von，TheTheoryofMoneyandCredit，[192-3]
Misselden，Edward，FreeTrade，ortheMeanestomakeTradeFlorish，[342]
Monetaryeconomy，non-，see[Non-monetaryeconomy]
Monetarypolicy，thefutureof，[378
]andrateofinterest，[164]，[202-8
]
andrateofinterestinclassicaltheory，[243-4
]
andliquidity，[196-9]
andproductionofmoney，[230]，[235]
andsavingandinvestment，[84]
andthetradecycle，[316-17]
andbalanceoftrade，[337-9]
andwages，[267-9]Mercantilistson，[341-2]Humeon，[343n]Money¾；itsessentialproperties，[222-44
]，[293]
itspositionintheeconomicsystern，[173]，[292-4
]
anddebts，[167n]
itscarryingcosts，[225-7]，[233-4
]，[238]
thedemandfor，[84]，[194-5]，[248-9
]，[263-4]
itselasticityofproduction，[230-1]，[234-6]，[238]
itselasticityofsubstitution，[231]，[234]，[238]
andrateofinterest，[166-74]
inMercantilistthought，[340-1]，[345-7
]，[358-9]Moneyincome，see[Income]
Money，income-velocityof，defined，[201]；[194-5]，[209]，[258]，[289
]，[299]，[304]
Money，quantityofanultimatevariable，[247-8]
andbondprices，[200]
andemployment，[171]，[173]
andhoarding，[174]
andrateofinterest，[167-8]，[171-4
]，[205]，[233]
andliquidity，[196-9]，[241n]
andtheprice-level，[173]，[295-9]，[303-9]
andquantitytheory，[209]，[304-6]
andrentiers，[290]
andsavingandinvestment，[79-85]
andmoney-wages，[171]，[173]，[258]，[266-70
]
inMercantilistthought，[340-1]，[345-7
]，[358-9]
Humeon，[343n]
Lockeon，[342-4]Money，quantitytheoryofrestated，[285]，[295-6]，[
305-6]
andliquidity，[208-9]
andfullemployment，[289]
Locke\'stheory，[343-4]Money，stamped，[234]，[357-8
]
Money，velocityofcirculationof，Lockeon，[343]
Money-wages，see[Wage-unit]and[Wages，money]
Monopolyprices，[268-70
]
Mortgages，[241]
Multiplier，[113-31
]inGreatBritain，[122]
intheUnitedStates，[122]，[127-8]
andstability，[250-2]
Pigou\'srejectionof，[277]
Kahnon，[113-15]，[119]Multiplier，theemployment，defined，[115]；[248]，[273]
Multiplier，theinvestmentdefined，[115]；[127]，[248]
andthequantityofmoney，[298-9]Multiplier，marginal，[126]
Mummery，A。F。，[364-70
]
Mun，Thomas，[344]
NationalDebt，[264]
NationalDividend，[5n]，[
379]，seealso[Income]
\'Naturalforces\'，see[Laissez-faire]
\'Natural\'tendenciesnotalawofnecessity，[254]
\'Natural\'rateofinterest，see[Interest，rateof]
Neo-classicalSchool，[177]
Netinvestment，see[Investment，net]；Saving，see[Saving，net]
\'Neutral\'rateofinterest，[183]，see[Interest，rateof]
NewDeal，[402]andenterprise，[162]
[Page423]INDEX
Newdealcont。andmonopoly，[408]
andstocks，[331-2]NewYorkinvestmentmarket，[
159]，[160]andn，[172]
Non-monetaryeconomy，adefinitionof，[239]；[222]
Non-staticeconomy，[99]，[146]，[293]
Normalcost，[70-1
]
Normalprofit，[72]intheTreatiseonMoney，[77]Obsolescence，[163]
Open-marketoperations，[197-9
]，[267-8]
Opensystem¾；inclassicaltheoryofwages，[11]
andthemultiplier，[120]
andreductionofwages，[262-3]
andwagepolicy，[270]，[301]Optimism¾；ofclassicaltheory，[33]
andeconomicactivity，[161]
andthetradecycle，[316]Output¾；asawhole，[17]，[43]，[67]；itsplaceineconomics，[293-4]
stabilityofmoney-costof，[237-8]
diminishingreturnsof，[91-2]，[300]，[302]，[328]
andfullemployment，[289]
andtrueinflation，[303]
limitto，setbyrateofinterest，[229]
andliquidity，[195-6]
andchangeinquantityofmoney，[298]
andsavingandinvestment，[77-8]
andStatecontrol，[378]
ordinarysupplycurveand，[281]
supplypriceof，[300]，[328]
andthetradecycle，[325-6]，[328-9
]，[331-2]
andwage-unit，[269]
Seealso[Income]Output，current，valueof，equatedtoincome，[63]
Output，elasticityof，defined，[282-3]，see[Production，elasticityof]
Overdrafts，[196]
Over-investment，[320-4
]，[370]
Over-saving，Hobsonon，[365-70
]
Ownershipandmanagement，theseparationof，[150-1]，[153]
Own-rateofinterest，see[
Interest，own-rateof]
Periodofproduction，[76]，[214-17
]defined，[287]Petty，W。，[342]，[346]，[359]，[362]
Pigou，A。C。，[3n]，[19]，[32
]，[56]，[59]，[142]，[186]，[238]EconomicsofWelfare，[5n]，[38]，[39]，[188]，[190]IndustrialFluctuations，[189-90
]，[395]，[399]，[411n]TheoryofUnemployment，[7]，[13]，[72]，[190
]，[260]，[272-9]，[399]Poorcommunity，employmentin，[31]，[219-20
]themultiplierin，[125-6]Pope\'sfatherandchestofguineas，analogyof，[221]
Populationchanges¾；inthenineteenthcentury，[307]
andlengthoftradecycle，[318]
andstockofmoney，[340n]
andwar，[381]Precautionary-motiveforliquidity，see[Liquidity]
Preciousmetals¾；andmercantilism，[333]，[334n]，[335-8
]，[344]，[347]
andstampedmoney，[338]
andthegoldstandard，[348-9]Prices¾；thetheoryof，[292-309]
andchangesinemployment，[173]，[249]，[253]
andfullemployment，[118]，[289]，[291]
andpublicworks，[117]
andquantitytheoryofmoney，[209]，[304-5
]
andthetradecycle，[328]，[330]
andchangesinmoney-wages，[12]，[239]，[252-3
]，[262-4]，[266]，[269-74
]，[306-9]Price-level¾；theconceptcriticised，[37]，[39-40
]，[43]
and\'naturalrate\'ofinterest，[242]
stabilityof，[64]，[239]，[250-3]，[270-1]，[288-9
]
Seealso[Prices]Prices¾；elasticityofexpected，inresponsetochangesineffectivedemand，defined，[284-5]
elasticityof，inresponsetochangesinquantityofmoney，defined，[305]；[296]Prices，\'administered\'，[268]，[
270]
Prices，monopoly，[268]，[270]
Primecost¾；defined，[53]
andquantitytheoryofmoney，[305]
andusercost，[68-9]
[Page424]INDEX
Primecost，average，[68]
Primecost，marginal¾；andemploymentfunction，[283]
andusercost，[68]
andchangesinmoney-wages，[262]，[266]
andwage-cost，[272-3]，[299-300
]，[302]
andPigou\'sTheoryofUnemployment，[272-3
]，[276]Probability¾；anduncertainty，[148n]
andstock-exchangevaluations，[152]
andliquidity，[240]Proceedsofemployment¾；defined，[24]；[25]，[55]，[77]，[89]，[290]
andusercost，[66-7]，[70]
marginal，[55]，[70]
Seealso[Income]Production，elasticityof¾；preliminarydefinitionof，[230]
defined，[282-3]
andemploymentfunction，[282-5]
andpropertiesofmoney，[230-1]，[234-6
]，[238]
andquantitytheoryofmoney，[300]，[304-6
]Production，factorof¾；labourasthesole，[213-15]
Mercantilistsandmoneyas，[341]Production，periodof，[76]，[214-17
]defined，[287]Productivityofcapital，andmarginalefficiencyofcapital，[137-41]andyieldfromcapital，[213-17
]Productivitytheoryofwages，marginal，Marshallon，[140n]
Profit¾；andemploymentfunction，[283]，[289-90
]
andover-saving，Hobsonon，[369-70]Profit，gross，ofentrepreneurs，see[
Incomeofentrepreneurs]
Profit，net，ofentrepreneurs，see[
Income，net，ofentrepreneurs]defined，[57]discussed，[56-8]，[59]，[92
]
andusercost，[68-9]Profit，normal，andlong-，andshort-periodsupplyprice，[68]intheTreatiseonMoney，[77]Profitmotive，andaccumulation，[335]
Propensitytoconsume，tohoard，tosave，see[Consume，propensityto]；
[Hoard，propensityto]；[Save，propensityto]
Prospectiveyield，see[Yield]
Protection，[334-5
]
Provision，financial，see[
Supplementarycost]
Psychologicalfactors¾；theultimate，[246-7]
andstability，[250-4]Psychologyofenterprise，[150-1
]，[161-3]
Psychology，mass，ofinvestors，[154-5
]，[159]，[172]，[317]
Publicworks，[116]，[119]，[127]
Pye，Philip，[354]
Pyramids，buildingof，[131]，[220]
Quantityofmoney，see[Money，quantityof]
Quantitytheoryofmoney，see[Money，quantitytheoryof]
Quasi-stationaryconditions，[220-1]
Rateofdiscount，[135]，[224]
Rateofinterest，see[Interest，rateof]
Rateoftime-discounting，changesin，[93-4]
Realdemandscheduleforlabour，see[Labour]
Realincome，see[Income]
Realwages，see[Wages]
Rent，comparedtoInterest，byLocke，[343]
Rentfactors¾；andmoney，[231]
andelasticityofemployment，[288]Rentiers¾；futureof，[221]，[376]
andfullemployment，[290]
andreductionofmoney-wages，[262]Replacementcost¾；defined，[135]
andmarginalefficiencyofcapital，[135]
andtradecycle，[321]，[323-4]
andusercost，[71]
andDouglas\'theory，[371]\'Returnovercost，rateof\'，IrvingFisher\'s，[140-1]
Ricardo，[3n]，[4n]，[5n]，[18]，[32]，[186]，[190-2]，[244
]，[340]，[367]，[369]LettersfromMalthusto，[362]，[363]
PrinciplesofPoliticalEconomy，[190-2
]Risk¾；threetypesof，[144-5]
andaccumulation，[348]，[351]
andfutureofcapitalism，[221]，[375]
andinequalityofincomes，[372]
to-day，[309]
themonetaryauthorityanddebtsofdifferentdegreesof，[205-6
]
andalowrateofinterest，[208]
moral，[144-5]，[208]，[309]Risk-cost，[68]
Risk，entrepreneur\'s，[144-5
]
[Page425]INDEX
Risk，lender\'s，[144-5
]
Risk-premiumandliquiditypremium，[240
]
Robbins，L。，[30n]，[79]，[192
]
Robertson，D。H。，[78]，[79n]，[143n]，[180n]，[187n]，[327]，[406
]
Robertson，J。M。，[365n]
RobinsonCrusoe，dialoguebetween，andastrangerinGesell\'sNaturalEconomicOrder，[356]
\'Roundabout\'methodsofproduction，[211]，[214-15]
Rueff，J。，[399]
Save，propensityto¾；andpropensitytoconsume，[65]
andrateofinterest，[165]，[178]，[183]，[217-20
]
chronictendencyof，[347]
andHobson\'stheory，[367-8]
seealso[Consume，propensityto]Saving¾；defined，[62]
discussed，[61-5]
andconsumption，[217-18]，[248]
andelasticityofemployment，[287]
itsfuture，[372-3]，[375-6
]
inTreatiseonMoney，[60]
Hobsonon，[364-71]
andJevons\'sTradeCycletheory，[330]
Malthuson，[363-4]
Mandevilleon，[360-2]
inMercantilistthought，[358-9]
AdamSmithon，[352]Savingandinvestment，[61-5
]，[74-85]，[183-5
]，[328]andclassicaltheory，[177-9]Saving，aggregate，[80]，[110-11
]Marshallon，[178]，[186-8]Saving，forced，[79-81
]，[183]，[292]，[328]
Saving，individual，natureof，[19]，[21]，[64-5]，[210-13
]
Saving，negativedis-saving，[82]unemploymentreliefand，[21]，[109]
andzerorateofinterest，[217-18]Saving，net，defined，[60]；[62]，[64]
Saving，over-，Hobsonon，[365-70
]
Savings，accumulated，andliquidity，[194]
Savings-deposits，[195]
Say，J。B。，[3n]，[18]，[363]
Say\'sLaw，[26]
Scarcityandyieldofcapital，[213-15]
andproductivity，[215]Schoolsofthoughtconcerningtradecycle，[324-9]
Schrö；tter，von，[344]，[359]
Securities，priceof，[94]，[199-200
]，[206]
Shortperiod¾；consumptionandchangesintherateofinterestin，[93-4
]
elasticityofemploymentin，[302-3]
diminishingreturnsin，[81]，[91-2]，[114]，[121-2]，[302]，[305-6]，[328]
wagepolicyin，[270]
fluctuationsofliquidity-preferencein，[336]Short-termbillsandbankrate，[206]
Short-termexpectations，see[Expectation，short-term]
Short-termloans¾；andbankcharges，[208]
andchangesinwage-unit，[263]Sinkingfunds，[95]，[100-2
]
Smell，afactorofproduction？，[215]
Smith，Adam，[352-3
]，[361n]，[368]WealthofNations，[352n]Socialisedcommunity，wagepolicyin，[267]
Socialism，[377]
Solon，ageof，[340n]
SouthPole，expeditionto，analogyof，[162]
Spain，infifteenthandsixteenthcenturies，[337
]
Speculation，[154-64
]distinguishedfromenterprise，[158-9
]
intheUnitedStates，[158-60]，[323]
inGreatBritain，[159-60]Speculativemotivetoliquidity，see[Liquidity]
Speculators，professional，[
154-64]，[316]
\'Spot\'prices，[222-3
]
Sraffa，P。，[223n]
Stability¾；conditionsof，[64]，[250-4]
andprices，[64]，[239]，[250-3]，[
270-1]，[288-9
]
andwagepolicy，[269-71]Stampedmoney，[234]，[257-8
]，[357-8]
Standardoflife，andconsumption，[
97]，[218-19]，[262]
Standard，monetary¾；andnatureofmoneyandinterest，[224-5
]，[228-30]，[236]
riskofchangesin，[144]
inthenineteenthcentury，[308]
Seealso[Goldstandard]State¾；andborrowingforunemployed，[251]
andinvestment，[106]，[164]，[220-1
]，[320]，[325]，[335]，[349]，[351]，[376-7
]，[380]
printingmoney，andliquidity，[200]StateSocialism，[378]
[Page426]INDEX
Stationarystate¾；depreciationin，[99]
andcalculationofyield，[139]，[145-6
]
liquidity-functionin，[208]
itsplaceineconomics，[293]Stationarystate，thequasi-，[220-1]
Stephen，Leslie，onMandeville\'sFableoftheBees，[359-60]
Stockexchanges，[75]，[150-64
]，[199]andtradecycle，[316]，[319-20
]Stocks，[47]，[124]infinancialcrises，[207]Stocks，surplus¾；carrying-costsof，andtradecycle，[317-19
]
characteristicsof，[226]
andelasticityofemployment，[288]
Hawtreyon，[55n]
andNewDeal，[331-2]
andusercost，[70-1]Substitution，elasticityof，[231]，[234]，[236]，[238]
Supplementarycost¾；defined，[56]
andconsumption，[98-106]，[109]
andincome，[56-9]
andthemultiplierintheUnitedStates，[128]
andusercost，[68-9]，[73]
inDouglas\'stheory，[370]Supplementarycost，basic，defined，[59]
Supplementarycost，current¾；defined，[59]
andusercost，[70-1]Supply¾；
Supplyanddemand，placeof，ineconomics，[292-4]
Supplyoflabour，see[Labour]
Supplycurve，theordinary，[281]relationof，toaggregatesupplyfunction，[44-5
]Supply，elasticityof，see[
Production，elasticityof]
Supplyfunction，aggregate¾；defined，[25]；[29]
andchoiceofunits，[42n]
andordinarysupplycurve，[44-5]
theinverseoftheemploymentfunction，[89]，[280-1
]
ofparticularindustries，[55n]，[115-16
]，[173]，[246]
forindustryasawhole，[55n]Supplyprice，aggregate¾；defined，[25]
andusercost，[29n]，[55n]，[67]
andconsumption，[30]，[98]Supplyprice，andusercost，[55n]，[67-8]，[75]
Supplypriceofaninvestment，defined，[135]；[135-6]，[147]，[248
]
Supplyprice，long-period，[
68]
Supplyprice，normal，andequilibrium，[228]
Supplyprice，short-period，[67-8]，[328]
Surplusstocks，see[Stocks，surplus]
Sur-tax¾；andliquidity，[309]
andinequalityofwealth，[372]Tarshis，L。，[394-410
]
Tastes，[147]，[225]，[245]
Taussig，F。W。，oninterest，[176]
Taxation¾；andinequality，[372-3]
andliquidity，[309]
oncapitalprofits，[94-5]
andmoney-wages，[264]Termsoftrade，[263]，[270]，[334]，[404]
Theoryofvalue，[292-3
]
Thomas，Albert，[349n]
Thrift¾；inMercantilistthought，[358-9]Hobsonon，[365n]，[366]，[368-9
]
Mandevilleon，[362]Timeandnatureofmoney，[293-4
]
Time-deposits，[167n]
Time-discounting，changesinrateof，[93-4]
Time-elementinTradeCycle，[314]，[317-18
]
Time-lag，[122-5
]
Time-preferencesofindividuals，[166]
Trade，balanceof，[120]，[262-3
]，[333]，[335-8]
Tradecycles¾；theoryof，[250]，[313-32]
andwages，[301]
andunforeseenchanges，[124]
andconsumption，[97]
Pigouon，[278-9]Traderestrictions，[338-9
]
Trade，termsof，[263]，[270]，[334
]
Tradeunions，[16]，[267]，[301]
Transactions-motivetoliquidity，see[Liquidity]
Transfertaxes，[160]
Treasurybillsasmoney，[167n]
TreatiseonMoney，[151n]\'stateofbearishness\'andthe\'bull-bear\'positionin，[109n]，[169n]，[173-4]
naturalrateofinterestin，[242-4]
treatmentofmoneyin，[167n]，[194-5
]
andperiodofproduction，[287]
savingsandinvestmentin，[60-1]，[74
]，[77-80]
andsurplusstocks，[70]
tradecyclesin，[49-50]，[123]，[319n]TreatiseonProbability，[
148n]
[Page427]INDEX
Uncertainty¾；andpropensitytoconsume，[94]
andcrises，[316]
andexpectation，[148]
andrateofinterest，[145n]，[218-19
]
andliquidity-preference，[168]，[182]，[201]
andprobability，[148n]
andelasticityofsubstitutionofmoney，[231]
andquantitytheoryofmoney，[208]Under-consumption，[324-7
]Douglason，[370]Hobsonon，[364-71]
inMandeville\'sFableoftheBees，[359-62
]
inMercantilistthought，[358-9]Unemployment¾；andauthoritariancontrol，[381]
andStateborrowingforreliefof，[251]
andeffectivedemand，Malthuson，[362-4
]
andgoldstandard，[348-9]
andfuturepolicy，[382]
andnatureofmoney，[235]
andProtection，[334-5]
andnegativesaving，[109]，[121]
intheUnitedStates，[9]
theMercantilistson，[346-7]，[358-9
]Unemployment，frictional¾；defined，[6]；[15-16]
Pigouon，[278]Unemployment，involuntary，[6
]，[22]，[128]，[289]defined，[15]
Pigouon，[5n]，[7]，[13]，[190]，[274-5
]Unemployment，voluntary，defined，[6]，[8]，[16]
UnitedStates¾；boomin1928-9in，[322-3
]，[327]
capitalexpansionanddepreciationin，1924-9，[100]
propensitytoconsumeandstock-marketin，[319]
financialcrisisof1932in，[207]
employmentandrateofinterestin，[219]
themultiplierin，[122]，[128]
\'NewDeal\'andrecoveryin，[331-2]
openmarketoperationsin，[197]
stockmarketin，[159-60]，[172]
uniformityofopinionin，[159]，[172]
unemploymentin1932in，[9]
wagepolicyin，[269]Units，thechoiceofthefundamental，[37-45]，[214]
Unsoldgoods，see[Stocks，surplus]，and[Capital，liquid]
Usercost，[53-5
]，[58]，[66-73]preliminarydefinition，[23]
defined，[53]
discussedindetail，[53-5]，[66-73
]
andincome，[58]
and\'financialprudence\'，[109]
instationarystate，[146]
andsurplusequipment，[109]
andwastage，[99]
Marshalland，[72]
Pigouand，[72]Usercost，marginal，[54]，[67]，[72]andreturnoncapital，[139]
changesin，[302-3]
andrisingprices，[290]Usurylaws，[241]，[340]，[351-3
]
Utility¾；ofcapital，marginal，[137]；Marshall\'suseof；[139-40
]
ofmoney，[231]
ofwages，[5]
ofwages，marginal，[283]Variables，dependentandindependent，ofGeneralTheory，[245-7]
Velocityofcirculationofmoney，see[Money]
Vestedinterests，[383]
Voluntaryunemployment，defined，[6]，[8]，[16]
Wages¾；
Wages，Marshallonmarginalproductivitytheoryof，[140n]
Wages，utilityof，[5]marginalutilityof；[253]Wagesbillandthedemandformoney，[11]，[
263-4]
Wage-cost，itsidentificationwithprimecost，[272-3]，[276]andprices，[299-300]，[302]Wage-goods，[7]theircarrying-cost，[239]inPigou\'sTheoryofUnemployment，[272-9
]，[301]Wages，moneychangesin，inclassicaltheory，[7-15
]，[257-60]，[284]changesin，inrelationtorealwagesandoutput，[394-412
]effectsofchangesin，analysed，[260-9
]stabilityandchangesin，[251-3
]，[269-71]，[303-4
]theirrigidity，[257]，[266]
andfullemployment，[289]
inGreatBritain，[276]
[Page428]INDEX
Wagescont。andnatureofmoney，[232-3]，[237-9]
inPigou\'sTheoryofUnemployment，[272]，[275-7
]Wages，money-，elasticityof，defined，[285]，[304-6]
Wagepolicy，[266-71
]，[339n]Pigouon，[278]Wages，real¾；inclassicaltheory，[5-18]，[
21-2]，[259]，[284]Pigouon，[13]，[238-9]，[272-8
]natureofresistancetoreductionsof，[264]effectsofpolicyfixing，[269-70
]
andfullemployment，[289-91]，[401]，[403]
inGreatBritain，[276]Wages-Fund，[364]，[366]
Wage-unit¾；defined，[41]
discussed，[41-5]
intheGeneralTheory，[245-8]
andmarginalefficiencyofcapital，[141]，[147]
andpropensitytoconsume，[90-2]，[95-6
]，[107]
andmarginalpropensitytoconsume，[114-17
]
andemploymentfunction，[280-6]
andforeigninvestment，[336-7]
andliquidity-preference，[171-2]，[180
]
andchangesinthequantityofmoney，[83]，[171]，[173]，[230
]，[232]，[295-6]，[298-304
]，[307-9]
andnatureofmoney，[230]，[232]
andquantitytheoryofmoney，[209]，[295-6
]，[298-304]
andprices，[295-6]，[298-304
]，[307-9]
inpre-warGreatBritain，[337]
infifteenth-andsixteenth-centurySpain，[337]
andMercantilisttheory，[340]Waiting¾；Casselon，[176]
Carveron，[176]
Pigouon，[188]，[190]WallStreet，[159-60
]，[172]
Walras，É；lé；mentsd\'Economiepure，oninterest，[176-7]
War¾；theMercantilistson，[348]
andfutureofcapitalism，[380-2]Wealth¾；savingandthedesirefor，[211-13
]，[348]
fiscalpolicyandgrowthof，[95n]
inequalityof[110]，[372-5]
gold-miningand，[130-1]
\'natural\'and\'artificial\'，inMercantilisttheory，[341]Wealthycommunity¾；accumulationin，[219-20]
effectivedemandin，[220]
employmentin，[31]
themultiplierin，[125-6]
standardoflifein，[125-6]Wicksell\'s\'natural\'
rateofinterest，[183n]，[242]
Wildduck，[183]
Windfallloss¾；defined，[57]andnetincome，[57-8]，[92-5
]
andchangesofemployment，[288]Wood，G。H。，[395]
Workingcapital，see[Capital，working]
Yieldofassets，defined，[225]
Yieldofcapital¾；duetoscarcity，[213]Yieldofcapital，prospective¾；defined，[135]
relationof，tocurrentyield，[141]
andstability，[250]，[252]
andmarginalefficiencyofcapital，[135-7
]，[147]，[246-8]
ourignoranceof[149-50]
andindividualsaving，[210-12]
estimationofinfuture，[221]