in the introduction to the preceding section the essential propositions forming the quantity theory of money were stated in order focus attention on the meaningful relationships embodied in the classical approach to monetary theory.
In introducing this section, we will show that much of the essence of the Keynesian Revolution lies in the denial of the validity of most of these five key propositions Keynes’ ability to deny them derives from his demonstration that an economy could achieve an equilibrium with substantial amounts of unemployment and that this unemployment could not be reduced by cutting money wages, as the classical economists had long supposed.
In term of its theoretical formulations and policy prescriptions, the Keynesian approach has much in common with that of the discredited Banking School, even though Keynes believed he owed an intellectual debt to Person Malthus and the mercantilists of the pre-classical period.