Change Quote by Joan Robinson
““After the war, when the problem of deficient effective demand seemed to have faded into the background, a fresh question came to the fore — long-run development. The change arose partly from the internal evolution of economics as an academic subject. The solution of one problem opens up the next; once Keynes’ short-period theory had been established, in which investment plays the key role, it was evidently necessary to discuss the consequences of the accumulation of capital that investment brings about. [p. 92]””
About This Quote
Source Book: Economics for a Crowded Planet, Joan Robinson, 1971
The quote notes that after short‑run demand issues receded, economists turned to long‑run development, linking investment, capital accumulation, and future growth.
In simple terms: After solving short‑run demand, focus shifts to long‑run growth and capital.
Key Takeaway
Consider long‑run implications of current investment.
Themes
economics
development
capital
investment
growth
Mood
analytical
thoughtful
Type
theoretical
academic
When to use this quote
- policy planning
- business strategy
- academic research
- investment decisions
Key Concepts
Keynesian theory
long‑run dynamics
capital formation
Questions to Reflect On
- How does current investment shape future growth?
- What long‑run risks are ignored by focusing only on demand?
A Different Perspective
Short‑run fixes don’t guarantee long‑run success; structural factors matter.
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