Publication Date


Document Type

Working Paper


Professor John Hall

Journal of Economic Literature Classification Codes

E12, E22, E24, H54

Key Words

Domar, Employment, Expansion, Keynes


This inquiry seeks to establish that Evsey Domar extends Keynes’s thinking and in this manner helps to establish a post-Keynesian tradition. First, I shall consider Keynes’s ideas concerning problems facing market capitalism as appears in his book, The General Theory of Employment, Interest, and Money. Then I shall continue with this inquiry and consider Domar’s insights into expansion and employment and his concerns regarding capital accumulation, as well as his confronting a theory posited by Keynes concerning investment and employment, raising the issue of whether Keynes’s understanding is accurate. The last part of this inquiry deals with Domar’s concerns about the stage when the economy will reach its limits of capital absorption.

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