Keynes and the birth of modern macroeconomics

Laidler, David

doi:10.1017/ccol0521840902.003

Cited by 14 publications

(2 citation statements)

References 15 publications

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“…Grappling with the paradoxical persistence of poverty and unemployment within wealthy, technologically advanced societies, Keynes highlighted the destabilizing effects of volatile intersubjective expectations at the heart of modern liberal capitalism. In his 1936 General Theory of Employment, Interest and Money , Keynes challenged the classical liberal faith in the capacity of the economy to achieve sustained growth through the natural equilibrium between supply and demand (Laidler, 2006: 39). Keynes argued that capitalist economies might not always achieve balance.…”

Section: Productivist Legacies Of New Deal Economicsmentioning

confidence: 99%

Greening Keynes? Productivist lineages of the Green New Deal

Green

2022

The Anthropocene Review

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Climate change has propelled the Green New Deal to prominence as a strategy for greening the economy. This article interrogates the Green New Deal’s coherence and suitability as a response to ecological crisis. Retracing the intellectual lineages of New Deal-era economic thought, the article reveals a common Keynesian inheritance of productivist preoccupations with full employment, rising income and productivity, that links Green New Deal proposals with their New Deal progenitors. This Keynesian inheritance generates internal inconsistencies within Green New Deal proposals, undermining their coherence and suitability as visions of green transition. Green New Deal proponents seek a political economy that respects ecological limits but they rationalize and legitimate their visions of green transition through a Keynesian commitment to a virtuous circle of rising investment, full employment, increasing income, and economic growth. This Keynesian inheritance is both premised on the denial of ecological limits and tarnished by its historical association with environmental destruction. Outlining an alternative approach, the article revisits the methodological historicism of New Deal-era economic thinking as a guide for redefining strategies of green transition. Drawing on Keynes’s reflections on the historical impermanence of the ‘economic problem’ and mapping contemporary institutional dynamics, the article proposes a more consistent, transformative, and radical rupture from incumbent macro-economic imaginaries

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Section: Productivist Legacies Of New Deal Economicsmentioning

confidence: 99%

Greening Keynes? Productivist lineages of the Green New Deal

Green

2022

The Anthropocene Review

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“…1 1 For example, Laidler (2006) writes: ‘New classical economics introduced two new and radical theoretical doctrines. First, the rational expectations idea.…”

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confidence: 99%

Did the Market‐clearing Postulate Pre‐exist New Classical Economics? The Case of Marshallian Theory*

Vroey

2007

The Manchester School

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Have new classicists invented market clearing or have they just rehabilitated it? This is the question addressed in the present paper. It is generally agreed that market clearing underpins Walrasian theory, so my exploration is limited to the question of whether this is also true for Marshallian theory. I will claim that this is broadly the case: once Marshallian theory is properly reconstructed, it exhibits market clearing as a constantly present result. Still, an important difference between market clearing à la Walras and market clearing à la Marshall exists: in the former market clearing is equilibrium, while in the latter market clearing can coexist with disequilibrium. Next, I investigate whether my conclusion extends to the labour market. Again the conclusion reached is affirmative both for Marshall's theory and for present-day Marshallian models. As to the latter, I take Friedman's Phillips Curve model as a case study. I show that this is a market clearing model in which, s... AbstractHave new classicists invented market clearing or have they just rehabilitated it? This is the question addressed in the present paper. It is generally agreed that market clearing underpins Walrasian theory, so my exploration is limited to the question of whether this is also true for Marshallian theory. I will claim that this is broadly the case: once Marshallian theory is properly reconstructed, it exhibits market clearing as a constantly present result. Still, an important difference between market clearing à la Walras and market clearing à la Marshall exists: in the former market clearing is equilibrium, while in the latter market clearing can coexist with disequilibrium. Next, I investigate whether my conclusion extends to the labour market. Again the conclusion reached is affirmative both for Marshall's theory and for present-day Marshallian models. As to the latter, I take Friedman's Phillips Curve model as a case study. I show that this is a market clearing model in which, strictly speaking, there is no place for the concept of unemployment -quite an ironical result for the paper that introduced the notion of the natural rate of unemployment!

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Prolog to Keynes’s IS-LM, 1930 to 1932

Young

Fuller

2022

Springer Studies in the History of Economic Thought

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Keynes and the birth of modern macroeconomics

Cited by 14 publications

References 15 publications

Greening Keynes? Productivist lineages of the Green New Deal

Greening Keynes? Productivist lineages of the Green New Deal

Did the Market‐clearing Postulate Pre‐exist New Classical Economics? The Case of Marshallian Theory*

Prolog to Keynes’s IS-LM, 1930 to 1932

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