Abstract
The General Theory offers three explanations as regard unemployment : 1. maximised and anticipated profit comes into sight before full employment ; 2. the shifts in employment are deemed linked to the changes in the agents' preference for liquidity, so that the «liquidity trap» when it emerges, is opposed to the fall in interest rate, blocking investment. This hypothesis would not explain joblessness over a long-medium term period ; 3. the marginal yieldings of assets should be in line with money interest rates. However, if the equilibrium rate for the yield of assets in lower than the liquidity premium, for full employment to be reached there must be a decrease in monetary interest rates which supposes exogenous money supply, inconsistent with effective demand and banking activity. Moreover, it is unrealistic. The only feasible explanation lies in abandoning the explanation in terms of aggregate demand deficit in favour of one in terms of a deficit in aggregate supply.
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