were "firmly in that Cambridge tradition which saw economics as the handmaiden of ethics" (p. 169).
The macroeconomic theory offered by Keynes, thus, was characterized by some degree of Marshallian heritage. Three of the areas of greatest convergence (as well as some divergence) of Keynesian and Marshallian theory were expectations, quantity of money, and the liquidity preference for holding money. The relationships between Keynesian and Marshallian theory in relation to these three concepts are reviewed in the following discussions.
Keynes' emphasis upon psychological factors involved in expectations are viewed by some economists as antithetical to rationality in the derivation of economic decisions from individual optimization (Ascheim & Tavlas, 1990, pp. 1-12). Referring to the "political and social atmosphere" and to "the nerves and hysteria and even the digestions and reactions to the weather" of investment decision makers, Keynes (pp. 162-63) stated that: "We should not conclude from this that everything
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