Abstract

Roger Garrison's commentary on Alan Meltzer's interpretation of Keynes and Meltzer's interpretation itself are closer to each other and further from Keynes's sense than one might imagine. Keynes's logic rests on an unsubstantiated guess, as Keynes admitted, about the tendency for consumption to stagnate in an advanced economy; and on the nonsensical proposition that the possessors of loanable funds are unilaterally able to determine the cost of those funds outside of the supply‐and‐demand financial market.