Conclusion

Having demonstrated that wage-price deflation in the context of high unemployment is a destructive process in chapters 2 and 19 and that interest rates are likely to rise when the economy is failing in chapters 13-15, Keynes completed his attack on the classical theory of stabilizing disequilibrium processes. But these chapters did not complete his analysis of the "insane" financial markets of this era. This required a theory of the stock market and its effect on capital investment, which he provided in chapter12.