This paper shows that the return to Keynes’s irrelevant and incorrect doctrines from his General Theory has begun; hence, it must be prevented. This paper shows: 1) Hazlitt’s criticism of Keynes’s concept of the investment multiplier is entirely correct, revealed and based on Keynes’s fundamental flaw using throughout of the General Theory , namely replacement between cause and effect; 2) Hazlitt correctly criticized Keynes’s extremely vague and incomplete definition of involuntary unemployment and full employment; however, he incorrectly stated that involuntary unem ployment couldn’t be equilibrium phenomenon; 3) Hazlitt successfully demonstrated that Keynes’ s monetary theory was confusing, incomplete, and even incorrect.
KeywordsKeynesHazlittMultiplierInvoluntary UnemploymentMoney Theory
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