Definition & Reality
in the General Theory
of Political Economy

3rd edition, Samuel van Houten Genootschap
October 2011, ISBN 978-90-802263-0-2
Order at American Book Center

PDF (2.5 MB) (Acrobat 5 or higher)

€ 35.95


The 3rd edition consists of the 2nd edition plus some 10 pages on the 2007+ crisis.
2nd edition: Out of print.This was at Dutch University Press
A Project Gutenberg version of the 2nd edition is available at
1st edition: Out of print. See the Journal of Economic Literature vol. 38, no. 4, December 2000, reference number JEL 2000-1325.

Confirmation for the Antilles 2006: PENAFC

Confirmation by the 2007+ crisis: CSBH

See the papers on the relation to the World Crisis 2007+

Cause and Cure of the Crisis: Paper, Video, Sheets of that video

The 1997 summary solution to the current mass unemployment in HTML

Keynes's General Theory is generalised even further by including endogenous government in the model, giving a truly general Political Economy. By including stagnation in economic policy making in our analysis, we arrive at a better understanding of the Great Depression and the Great Stagflation.

The general theory also explains why it would be advisable for a democratic society to create an Economic Supreme Court as a separate constitutional power, next to the Legislative, Executive and Judicial branches. 

This book primarily gives theory and stylized facts, and it is directed primarily at my fellow economists. The colleagues specifically must get to understand the Definition & Reality methodology before they will appreciate that my analysis is scientifically warranted. Much work remains to be done in practical research. And much work must also be done by the other professions. 

It may be hoped, none the less, that the parliaments of our democratic nations investigate the issue too, so that there is more hope for improvement in the living conditions of the many victims of the current imbalance of powers.

Warning: This book proves radical new ideas and must be read with care. If you spend more than a cursory glance on the PDF then it is advisable to get the hardcopy and continue reading from paper. I tend to focus my research on misconceptions that lead society away from common sense, and then I select pivots that cause crucially different points of view depending on how the argument is resolved. Such a pivot only works well if the argumentation gets proper attention.

Note: In 2012 the website location changed to This has been adapted in above PDF. The hardcopy print still uses the location.