1 Review Article Marshall, the Keynesian Revolution, and Sraffa's Significance

Keynes's fragmentary monetary theory of production grew organically out of Marshall's equally fragmentary monetary theory of exchange. The dangers associated with Keynes's close links with Marshall are alluded to. Indeed, without taking account of the classical spirit of Sraffa's work, Keynes's monetary theory may quite easily be integrated into the Marshallian-neoclassical framework of analysis. However, theorising, not literally, but in the spirit of Keynes and Sraffa, within a Ricardian-Pasinettian framework of vertical integration, opens the way to a Classical-Keynesian monetary theory of production. Keynes and Cambridge In the early eighties I had the opportunity to talk about Keynes and the Keynesian revolution to an elderly Norwegian managerial economist who had almost unbelievable knowledge about the history of economic theory. Is it fair and right, I remarked, that all these important things that have been said and written about the significance of money and credit, effective demand and cumulative processes, initiated by some kind of autonomous expenditures, since mercantilist times should be associated with the name of Keynes only? After all, in more recent times, Swedish, German and other economists, including Marshall, had also done important work on money and associated subjects. Yes, indeed, he replied, a lot has been said about money and its importance, entire libraries have been written about all this, but Keynes was the only one who worked out a 2comprehensive and consistent theory, a theory that is also capable of further elaboration and of integration into wider frameworks. Indeed, Keynes worked out a theory of employment within the general framework of a monetary theory of production (Keynes 1933 and 1936) where money is there right from the beginning as is illustrated by the famous Marxian scheme