Wages, Prices and Money

Keynes regarded the received treatment of money-wages and of the quantity of money as being particularly unsatisfactory. As he saw it, the presuppositions of the existing theory were irredeemably flawed as far as the effects of changes in money-wages and in the quantity of money were concerned. For that reason he elaborated on the general principles of his own analysis with a view to formulating an explanation of the part wages and the quantity of money play in determining the employment of the available resources which would be consistent with his own method of analysis.