The Turning Point in Keynes’s Theoretical Development: From A Treatise on Money to the General Theory

How did Keynes proceed from A Treatise on Money (hereafter the Treatise) to the General Theory? What was it that enabled him to change from the world of the former to that of the latter, and where exactly is the change to be located? These questions are crucial in understanding the Keynesian Revolution, and many interpretations have consequently been put forward. In our view, however, they lack the groundwork of thorough investigation. The present paper seeks to answer these questions convincingly with a new interpretation.