Milton Friedman`s economics and political economy
... making clear the distinction between old Keynesian and new Keynesian economics. 2. A taxonomy of Milton Friedman’s contribution Figure 35.1 provides a four-part taxonomy of Friedman’s intellectual contribution that is used to structure the rest of the essay. The first branch is labeled Friedman’s “e ...
... making clear the distinction between old Keynesian and new Keynesian economics. 2. A taxonomy of Milton Friedman’s contribution Figure 35.1 provides a four-part taxonomy of Friedman’s intellectual contribution that is used to structure the rest of the essay. The first branch is labeled Friedman’s “e ...
Trying to Make Sense of the Principle of Effective Demand
... Perhaps the most influential textbook ever written is Paul A. Samuelson’s Economics. But although the macroeconomic framework of Economics evolves from a simple IncomeExpenditure model (SAMUELSON 1948, Chapter 12) via the same model supplemented by an IS/LM-analysis (SAMUELSON 1973, Chapter 12 plus ...
... Perhaps the most influential textbook ever written is Paul A. Samuelson’s Economics. But although the macroeconomic framework of Economics evolves from a simple IncomeExpenditure model (SAMUELSON 1948, Chapter 12) via the same model supplemented by an IS/LM-analysis (SAMUELSON 1973, Chapter 12 plus ...
From Say`s law to Keynes, from Keynes to Walras` law: some ironies
... Produce, supply, sell, buy: the inflection of a few verbs is sufficient to express the essential phenomena of a mercantile economy. This simplicity is, however, illusory. Even though these actions are carried out self-confidently by individuals, the conjugation of the verbs, in the discourse of econ ...
... Produce, supply, sell, buy: the inflection of a few verbs is sufficient to express the essential phenomena of a mercantile economy. This simplicity is, however, illusory. Even though these actions are carried out self-confidently by individuals, the conjugation of the verbs, in the discourse of econ ...
Lecture 3 Theories of output determination
... Market forces (flexible prices, wages, and interest rates) correct economic problems. Limited government involvement in the economy leads to maximum wealth and the highest standard of living. Artificial government stimulation of the economy leads to problems in the long run. ...
... Market forces (flexible prices, wages, and interest rates) correct economic problems. Limited government involvement in the economy leads to maximum wealth and the highest standard of living. Artificial government stimulation of the economy leads to problems in the long run. ...
HAyEK`S CRITIQUE OF The General Theory
... the society’s investment multiplier will be lower. Therefore, in this situation, in order to maintain a constant level of spending it would be necessary for investment to increase in order to make up for this secular decline in consumption. But, for Keynes, there is no mechanism in the market capabl ...
... the society’s investment multiplier will be lower. Therefore, in this situation, in order to maintain a constant level of spending it would be necessary for investment to increase in order to make up for this secular decline in consumption. But, for Keynes, there is no mechanism in the market capabl ...
- Strathprints - University of Strathclyde
... of expectations, the relationship between investment and savings, the liquidity preference function, etc—nothing of this suggests that Sraffa may have had any significant role in their development. The only parts of the General Theory that may be directly linked up with Sraffa’s ideas are Chapter 16 ...
... of expectations, the relationship between investment and savings, the liquidity preference function, etc—nothing of this suggests that Sraffa may have had any significant role in their development. The only parts of the General Theory that may be directly linked up with Sraffa’s ideas are Chapter 16 ...
say`s law: were (are) the critics right?
... it because they understand it, or at least understand its implications. Sweezy (1947) noted that “the Keynesian attacks (on Classical Economics) . . . all fall to the ground if the validity of Say’s Law is assumed.” One can be assured that had economic policymakers in the United States and England h ...
... it because they understand it, or at least understand its implications. Sweezy (1947) noted that “the Keynesian attacks (on Classical Economics) . . . all fall to the ground if the validity of Say’s Law is assumed.” One can be assured that had economic policymakers in the United States and England h ...
Keynes and Marx - Post-Keynesian Economics Study Group
... dissatisfaction with the ‘final product’ of the intellectual process which had started in 1931-32 and he stated an intention to re-cast his ideas in a clearer and more satisfactory way. Joan Robinson thought that starting from Marx, rather than orthodox economics, would have saved Keynes ‘a lot of t ...
... dissatisfaction with the ‘final product’ of the intellectual process which had started in 1931-32 and he stated an intention to re-cast his ideas in a clearer and more satisfactory way. Joan Robinson thought that starting from Marx, rather than orthodox economics, would have saved Keynes ‘a lot of t ...
Beyond New Keynesian Economics: Towards a Post Walrasian
... requires significant simplification and squeezing of ideas into cubbyholes into which they do not quite fit. So I am sympathetic to the problems of classifying schools of thought, and recognize that any classification system will be less than perfect. It was in attempting to simplify some recent dev ...
... requires significant simplification and squeezing of ideas into cubbyholes into which they do not quite fit. So I am sympathetic to the problems of classifying schools of thought, and recognize that any classification system will be less than perfect. It was in attempting to simplify some recent dev ...
The new classical/real business cycle revolution: a - FEA
... postulates: (a) that agents act in their own self-interest and their behavior is optimal; and (b) that markets clear (Lucas and Sargent, [1979] 1994, p. 15). The ‘discipline’ term is used to convey the view that this is a rule that economists impose upon themselves and which stamps their specific wa ...
... postulates: (a) that agents act in their own self-interest and their behavior is optimal; and (b) that markets clear (Lucas and Sargent, [1979] 1994, p. 15). The ‘discipline’ term is used to convey the view that this is a rule that economists impose upon themselves and which stamps their specific wa ...
STEVEN PRESSMAN
... "Productivity," in Booms and Busts (M.E. Sharpe, 2011). "Inequality and the Economic Crisis—the Productivity Nexus," in Consequences of Economic Downturn, ed. Martha Starr (Palgrave Macmillan, 2011), pp. 83-101. "Federal Reserve System," Historical Encyclopedia of American Business and Finance (Sale ...
... "Productivity," in Booms and Busts (M.E. Sharpe, 2011). "Inequality and the Economic Crisis—the Productivity Nexus," in Consequences of Economic Downturn, ed. Martha Starr (Palgrave Macmillan, 2011), pp. 83-101. "Federal Reserve System," Historical Encyclopedia of American Business and Finance (Sale ...
Giancarlo Bertocco Money as an institution of capitalism. On the
... nature of the interest rate and shows that the interest rate can assume a value which is too high with respect to the rate that is coherent with full employment. Dillard (1987) notes that this explanation of the non neutrality of money is based on two elements: the first is the characteristics of mo ...
... nature of the interest rate and shows that the interest rate can assume a value which is too high with respect to the rate that is coherent with full employment. Dillard (1987) notes that this explanation of the non neutrality of money is based on two elements: the first is the characteristics of mo ...
Microfoundational programs
... There is – as there usually is in Whig histories – some truth to this story. But in telling a story of linear progress, the mainstream narrative misses a more complicated and more interesting story and misrepresents key elements. The microfoundations of macroeconomics was a problem long before the n ...
... There is – as there usually is in Whig histories – some truth to this story. But in telling a story of linear progress, the mainstream narrative misses a more complicated and more interesting story and misrepresents key elements. The microfoundations of macroeconomics was a problem long before the n ...
Wages Behaviour and Unemployment in Keynes and New
... Concerning the capacity of nominal wages reductions in restoring full employment, it is well known that Keynes did not believe that nominal wage rigidity was the main source of unemployment. As a consequence, he asserted that nominal wage cuts were not the proper cure for it, and might not be a cure ...
... Concerning the capacity of nominal wages reductions in restoring full employment, it is well known that Keynes did not believe that nominal wage rigidity was the main source of unemployment. As a consequence, he asserted that nominal wage cuts were not the proper cure for it, and might not be a cure ...
Full Employment and Free Trade: An Historical Episode of
... Coombs took a stronger line on the employment approach than his colleagues, desiring to ‘establish beyond doubt’ that Article VII was ‘primarily’ about raising living standards via full employment.9 Determined to establish the theoretical rationale for the employment approach within the context of o ...
... Coombs took a stronger line on the employment approach than his colleagues, desiring to ‘establish beyond doubt’ that Article VII was ‘primarily’ about raising living standards via full employment.9 Determined to establish the theoretical rationale for the employment approach within the context of o ...
LERNER, Abba Ptachya (1903-1982) by Mathew Forstater* Working
... their economic behavior’ (Lerner, 1951, p. 131, original emphasis) including, as we will see below, creating a demand for government fiat currency. Like taxation, borrowing is not a funding operation; rather, it is a means of managing reserves and controlling the overnight interest rate when the gov ...
... their economic behavior’ (Lerner, 1951, p. 131, original emphasis) including, as we will see below, creating a demand for government fiat currency. Like taxation, borrowing is not a funding operation; rather, it is a means of managing reserves and controlling the overnight interest rate when the gov ...
‘Right back where we started from’: from ‘the Roy H. Grieve
... Dn (MPn), and conditions of labour supply as shown by Sn1, and with the real wage at W1, employment will be N1, which is less than Nf (full employment). To achieve full employment, all that is required (according to the neoclassical theory) is that the workforce accept a lower real wage, = W2. If th ...
... Dn (MPn), and conditions of labour supply as shown by Sn1, and with the real wage at W1, employment will be N1, which is less than Nf (full employment). To achieve full employment, all that is required (according to the neoclassical theory) is that the workforce accept a lower real wage, = W2. If th ...
Microfoundational Programs
... labor market, extended to a wider macroeconomic framework in his “Expectations and the Neutrality of Money” (1972a; see also 1981, p. 7). As well as tracking people, we can also track concepts. Table 2 shows the number of articles that use terms in the microfoundational family plus another term ...
... labor market, extended to a wider macroeconomic framework in his “Expectations and the Neutrality of Money” (1972a; see also 1981, p. 7). As well as tracking people, we can also track concepts. Table 2 shows the number of articles that use terms in the microfoundational family plus another term ...
Keynes`s Approach to Full Employment
... filled by investment spending it can be filled by government spending, but the type of fiscal policy that could do the job is left to interpretation. The key is to increase money expenditures sufficiently to produce full employment. Keynes, however, did not endorse just any fiscal policy and he spec ...
... filled by investment spending it can be filled by government spending, but the type of fiscal policy that could do the job is left to interpretation. The key is to increase money expenditures sufficiently to produce full employment. Keynes, however, did not endorse just any fiscal policy and he spec ...
LEERTEXT - Heterodox Economics Newsletter
... principle of distribution, respectively, and the Keynesian vision of employment and output determination through the principle of effective demand. Based upon Pasinetti (1986a) this has been attempted in Bortis (2003). This means reasoning, not literally, but, in a broad-ranging way, in the spirit o ...
... principle of distribution, respectively, and the Keynesian vision of employment and output determination through the principle of effective demand. Based upon Pasinetti (1986a) this has been attempted in Bortis (2003). This means reasoning, not literally, but, in a broad-ranging way, in the spirit o ...
The Principle of Effective Demand and the State of Post Keynesian
... changes in the level of income or activity and not the rate of interest that restores equality to saving and investment. This is fine as far as it goes but it leaves the role of rate of interest and the marginal efficiency of capital unaccounted for in what is usually pres ...
... changes in the level of income or activity and not the rate of interest that restores equality to saving and investment. This is fine as far as it goes but it leaves the role of rate of interest and the marginal efficiency of capital unaccounted for in what is usually pres ...
Geoff Tily, Another “Useful Fiction”?
... (Tily 2007). In particular, I have suggested that IS-LM and its associated fiscal policy conclusions may have gained prominence because of an unwillingness to accept Keynes’s main policy conclusions concerning monetary policy. I have argued that these conclusions were very far reaching. In most gene ...
... (Tily 2007). In particular, I have suggested that IS-LM and its associated fiscal policy conclusions may have gained prominence because of an unwillingness to accept Keynes’s main policy conclusions concerning monetary policy. I have argued that these conclusions were very far reaching. In most gene ...
Keynes`s General Theory critique of the neoclassical theories of
... not tend to an exact equality of net advantage in different occupations, any individual or group of individuals who consent to a reduction of money-wages relatively to others, will suffer a relative reduction in real wages, which is a sufficient justification for them to resist it. On the other hand ...
... not tend to an exact equality of net advantage in different occupations, any individual or group of individuals who consent to a reduction of money-wages relatively to others, will suffer a relative reduction in real wages, which is a sufficient justification for them to resist it. On the other hand ...
Keynes and the Classical Economists: The Early Debate on Policy
... We will begin our exploration of the activist-nonactivist debate by considering the views of the classical economists. The term classical economist describes the mainstream economists who wrote from about 1776 through the early 1930s. For our purposes the most important element of classical economic ...
... We will begin our exploration of the activist-nonactivist debate by considering the views of the classical economists. The term classical economist describes the mainstream economists who wrote from about 1776 through the early 1930s. For our purposes the most important element of classical economic ...
Chapter 11 Economic Performance
... Doctrine dates back to Adam Smith Wealth of Nations (1776) Argued that if people were allowed to pursue their self-interest in free markets, resources would be guided as if by an “invisible hand” to produce the greatest, most efficient level of aggregate output ...
... Doctrine dates back to Adam Smith Wealth of Nations (1776) Argued that if people were allowed to pursue their self-interest in free markets, resources would be guided as if by an “invisible hand” to produce the greatest, most efficient level of aggregate output ...
Keynesian Revolution
The Keynesian Revolution was a fundamental reworking of economic theory concerning the factors determining employment levels in the overall economy. The revolution was set against the then orthodox economic framework: Neoclassical economics.The early stage of the Keynesian Revolution took place in the years following the publication of Keynes' General Theory in 1936. It saw the neoclassical understanding of employment replaced with Keynes' view that demand, and not supply, is the driving factor determining levels of employment. This provided Keynes and his supporters with a theoretical basis to argue that governments should intervene to alleviate severe unemployment. With Keynes unable to take much part in theoretical debate after 1937, a process swiftly got under way to reconcile his work with the old system to form Neo-Keynesian economics, a mixture of neoclassical economics and Keynesian economics. The process of mixing these schools is referred to as the neoclassical synthesis, and Neo-Keynesian economics can be summarized as ""Keynesian in macroeconomics, neoclassical in microeconomics"".