More on Keynes and the Classics

Abstract

This paper provides a simple, graphical review of the Keynes versus the classics debate. It focuses on four key issues: the roles of ¡ãexible wages and the velocity of money as well as the determination interest rates and the nominal price level. Its aim is to improve upon the rather bland presentation of Keynes' model usually found in textbooks and to give students a sense of the point counterpoint of this important debate.