Mister Keynes & Capital

“[Keynes’s] modern theory of investment…Conceiving of investment as simple growth of a stock
of homogeneous capital, is ill-equipped to cope with situations in which the immobility of
heterogeneous capital resources imposes a strain on the economic system. In particular, it can
tell us little about the ‘inducement to invest’ in a world where scarcity of some capital
resources co-exists with abundance of others.”

Ludwig M. Lachmann (1948, p. 698), Investment Repercussions, Quarterly Journal of
Economics 63, November.

This entry was posted in Uncategorized by christopher. Bookmark the permalink.

About christopher

Content of "Natural Order" attempts to reflect the commitment of Universidad Francisco Marroquin to support the development of a society of free & responsible individuals. The principal commentator for this blog is Christopher Lingle.

Leave a Reply

Your email address will not be published. Required fields are marked *