This introductory chapter in Keynesian monetary theory will parallel closely its classical counterpart. However, it will begin with a summary of Keynes' attack on classical theory, for only by seeing what basic tenets of that analysis he found objectionable can the truly innovative aspects of his own approach be appreciated and their merits evaluated.
After summarizing the objections to classical theory made by Keynes, a model derived from The General Theory will be constructed and, as far as possible, contrasted with corresponding components of its classical forebear. Lest the analysis get lost in the mechanics of the Keynesian approach, it should be remembered that Keynes told his readers that at full employment the classical forces come into their own.