Keynesian Economics and Price Theory Re-orientation of a Theory of M
This book reconstructs Keynesian macroeconomics so that it is compatible with the neoclassical dynamic microeconomic theory. This theory adopts three postulates: rational expectations, perfect price flexibility, and exclusion of the money in utility funct
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Advances in Japanese Business and Economics Editor in Chief: RYUZO SATO C.V. Starr Professor Emeritus of Economics, Stern School of Business, New York University Managing Editors: HAJIME HORI, Professor Emeritus, Tohoku University KAZUO MINO, Professor, Kyoto University MARIKO FUJII, Professor, The University of Tokyo Editorial Board Members: TAKAHIRO FUJIMOTO
Professor, The University of Tokyo
YUZO HONDA
Professor Emeritus, Osaka University Professor, Kansai University
TOSHIHIRO IHORI
Professor, The University of Tokyo
TAKENORI INOKI
MASAHIRO MATSUSHITA
Professor Emeritus, Aoyama Gakuin University
TAKASHI NEGISHI
Professor Emeritus, The University of Tokyo The Japan Academy
KIYOHIKO NISHIMURA
Professor, The University of Tokyo
Professor Emeritus, Osaka University Special University Professor, Aoyama Gakuin University
TETSUJI OKAZAKI
JOTA ISHIKAWA
Professor, Osaka University
Professor, Hitotsubashi University
KUNIO ITO
Professor, Hitotsubashi University
KATSUHITO IWAI
Professor, The University of Tokyo
YOSHIYASU ONO
JUNJIRO SHINTAKU
Professor, The University of Tokyo
KOTARO SUZUMURA
Professor Emeritus, Hitotsubashi University Professor Emeritus, The University of Tokyo The Japan Academy Visiting Professor, International Christian University HIROSHI YOSHIKAWA Professor, The University of Tokyo Advances in Japanese Business and Economics showcases the research of Japanese scholars. Published in English, the series highlights for a global readership the unique perspectives of Japan’s most distinguished and emerging scholars of business and economics. It covers research of either theoretical or empirical nature, in both authored and edited volumes, regardless of the subdiscipline or geographical coverage, including, but not limited to, such topics as macroeconomics, microeconomics, industrial relations, innovation, regional development, entrepreneurship, international trade, globalization, financial markets, technology management, and business strategy. At the same time, as a series of volumes written by Japanese scholars, it includes research on the issues of the Japanese economy, industry, management practice and policy, such as the economic policies and business innovations before and after the Japanese “bubble” burst in the 1990s. Overseen by a panel of renowned scholars led by Editor-in-Chief Professor Ryuzo Sato, the series endeavors to overcome a historical deficit in the dissemination of Japanese economic theory, research methodology, and analysis. The volumes in the series contribute not only to a deeper understanding of Japanese business and economics but to revealing underlying universal principles.
Masayuki Otaki
Keynesian Economics and Price Theory Re-Orientation of a Theory of Monetary Economy
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Masayuki Otaki Institute of Social Sciences The University of Tokyo Bunkyo-ku Tokyo Japan
ISSN 2197-8859 ISSN 2197-8867 (electronic) Advances in Japanese Business and Economics ISBN 978-4-431-55344-
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