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2.12 Three Important Interpretations of Keynes

In the vast literature relating to Keynes’s contribution since 1936 we can

identify three distinct interpretations which command varying degrees of

support (see Snowdon and Vane, 1997a). Coddington (1983) identifies three

interpretations, namely: (i) the ‘hydraulic’ interpretation, (ii) the ‘fundamentalist’

interpretation, and (iii) the modified general equilibrium approach.