Keynes With a Perfectly Competitive Goods Market

A geometric model of an economy with a perfectly competitive goods market based on chapters three and five of Keynes's Genera l Theory is developed. Short-run equilibrium, as well as disequilibri um dynamics, using a market period equilibrium concept, are examined. The model is compared to other Keynesian models; this reveals some p roblems with the fixprice microfoundations approach, and shows how th e diagonal cross and post-Keynesian models, despite some problems, ca n be appropriately reformulated and interpreted.