A CRITICAL APPROACH AND FURTHER ELABORATION OF KEYNES` THEORY OF INFLATION

Abstract

Among numerous authorities in the field of economy who have discussed the issue of inflation, Keynes holds one of the top positions. However, apart from Keynes′ undoubtfully significant contribution to the analysis of theory of inflation, it is important to point to the certain imperfections of his theory. These imperfections led some theorists into further elaborating of Keynes′ concept of inflation, and they all aimed at eliminating its shortages. At the same time, they attempted to complement the theory and to give it an appropriate, dynamic character. T. Koopmans, A. Smithies, B. Hansen and R. Turvey were among these, which is concisely presented in the paper.

Keywords

• inflation, price, demand, wage, income, consumption, savings, investments.