Ngân hàng có thể, ví dụ, thay đổi cấu trúc của chúng lãi suất đáp ứng với những thay đổi trong thái độ của họ đối với thanh khoản và rủi ro. Thứ tư, các khoản vay được cung cấp bởi các ngân hàng ở mức lãi suất phản ánh | IS-LM AND MACROECONOMICS AFTER KEYNES and thought it well done. 1936b 1973 70 . However this was the concluding sentence of a long letter in which he had discussed specific pomSs raised by Reddaway some of which went beyond the discussion in his review. Keynes s comment could be interpreted as just a cordial conclusion to a letter to a former student for whose ability Keynes had a high regard. Nevertheless it is interesting to see how Reddaway treats the issues that distinguish Harrod s exposition from that of Hicks. Any aspects of Reddaway s discussion which mirror features of Harrod s article that are lacking in Hicks s may point to things that Keynes thought important in the new direction he was trying to point economics. Reddaway emphasizes expectations even more than Harrod discussing uncertainty and risk 1936 32-3 . His exposition can be read as consistent with either a Marshallian or Walrasian approach although he consistently uses the term mutual determination which does not necessarily imply simultaneous determination . 1936 33n 34 35 . He agrees with Hicks in pointing to liquidity preference as the big innovation 1936 33 and like Hicks suggests the inclusion of current income in the equation for investment. Unlike Hicks he gives an economic reason for this the effect of current income on investor confidence 1936 33n . If there is anything that stands out in Reddaway s review which makes his approach more akin to Harrod s than to Hicks s it is the extended discussion of expectations or the state of confidence .8 The lack of any explicit discussion of expectations on Hicks s 1937 article is in stark contrast to the discussion in both Harrod s and Reddaway s articles. 4. Was Mr Keynes and the Classics guilty Both the lack of attention paid to expectations and the Walrasian nature of Hicks s 1937 article suggest that the answer should be yes. These two characteristics were major features of the IS-LM model which was the dominant form of macroeconomics in .
