Keynes used a different kind of theory, one that might be called “realytic,” because it is
a compromise between a realistic and an analytic approach. A realytic theory is contextual;
it blends inductive information about the economy with deductive logic. Reality guides
the choice of assumptions. Realytic theories are less inherently satisfying, but because they
correspond closely to reality, it is easier to draw policy conclusions from them. Keynes did
not start from first principles in The General Theory but instead used reality to guide his
choice of assumptions. Thus, although he concentrated on theory, he never lost sight of its
policy implications.