In this chapter, we shall further improve the general disequilibrium version of the Tobin type models of chapter 2. We recall that this version was already considerably extended and improved in chapter 3 in the direction of more descriptive relevance and greater consistency as far as the treatment of basic disequilibrium situations in the real part of the economy was concerned. Of course, much still remains to be done in the pursuit of such aims, and this will still be the case by the end of this book. Nevertheless, the model prototype of this chapter represents for the first time a version that can be the basis of all future developments of the structure of such monetary growth models. It not only integrates problems of effective demand on the market for goods in a basically coherent way, but also portrays the fundamental consequences of such an integration in an integrated model of monetary growth.

The prototype model we arrive at in this chapter can also be considered to provide the minimal extension of monetary growth models of a more orthodox type (as we have considered them in the preceding chapters) to a proper and basically complete Keynesian model of such an economy. Yet, due to this heritage, the model still exhibits many features which may appear as questionable from a post-Keynesian and other perspectives.