394 THE GENERAL THEORY OF EMPLOYMENT

Keynes, J. M. ( contd .)—

Treatise on Money, 49, 60, 70, 74,77-9, 124, 151 n., 167 n., 169 n.,^ I73> I 94"5> 2 4 2 > 287 n., 319 n.Treatise on Probability, 148 n.in The Nation and the Athenaeumon Protection, 334

Knight, F. H., on Interest, 176 n.

Kuznets, S. S., 102-4

Labour—

Pigou’s real demand function for,272-3, 273, 278-9elasticity of demand for, 258-9disutility of, 6, 128, 245marginal disutility of, 5, 28, 128,284, 291

as sole factor of production, 213-

2I 5

and future of interest, 375international division of, 333, 338,381

and production of money, 230-32marginal product of, 5, 83, 257supply of—not function of realwage only, 8; and Trade Cycle ,326

Labour units, defined, 41-2, 91, 114,282

Labour Government and enterprise,162

Laffenas, Les Tresors et richessespour mettre VEstat en Splendeur,. 35 8

L aissez-faire —and employment, 217-20and foreign trade, 335, 339, 348and investment, 159and Mercantilism, 348, 350and money, 129, 235and wage policy, 269and war, 348, 381-2Gesell on, 355

Land, and accumulation, 241-2compared to money by Locke, 343nationalisation, 355 n., 358

Leisure, 326

Liquid capital goods, see Capitaland Stocks

Liquidity—

incentives to, 194-209its nature, 240-41attitude to it an ultimate vari-able, 247-8

Liquidity {contd .)—

and the propensity to consume,108

and “sound finance”, 155, 159-160

and money - rate of interest,Z 34"S

and land, 241-2

in non-monetary economy, 240and individual saving, 212-13and wage-unit, 232and growth of wealth in India,33.7

Liquidity of money—

and carrying-costs, 233-4, 2 37and quantity of money, 241 n.,3°5

Liquidity-function—defined, 168its shape, 171-2its nature, 197-200, 205in crises, 207and employment, 248-9and quantity theory of money,208-9

and quantity of money, 298and money-wages, 172, 263-4Liquidity-preference—defined, 166, 168and rate of interest, 166-74, 180-181, 207

its three divisions, 170transactions - motive, defined,170, 170-72, 174, 182; re-classified, 195

precautionary-motive, defined,170, 170-72, .196speculative-motive, defined, 170,170-74

income-motive, defined, 195business-motive, defined, 195-6and expectation, 169and hoarding, 174and foreign investment, 336and public works, 120and the Trade Cycle , 313, 316,328

measured in wage-units, 172and wealth in Middle Ages, 351in long period, 306in nineteenth century, 308to-day, 309

and Gesell’s theory, 356and Locke on Interest, 343