Does anyone know of any attempts at what might be called a "Keynesian-Austrian synthesis" other than Garrison's work? I've sketched something out recently that I want to try and make more formal and I'm curious what other work has been done - I haven't come across much. One concern I have with Garrison is that there are parts where he (1.) assumes full employment, and (2.) constrains his version of the Keynesian model to a loanable funds theory of the interest rate. Both essentially rob Keynesianism of its central point, of course!
I'm working on a pretty standard IS-LM framework that doesn't do what Garrison did, but which includes a capital structure as in Prices and Production. Has anything like this been done before that I ought to be aware of?
That a theory is praxeologically derived doesn't mean its incompatible with something that isn't praxeologically derived. The conclusions he derives in Prices and Production, however, are praxeological in the sense that they aren't based on empirical observation. It's a work of pure logic.
re: "That a theory is praxeologically derived doesn't mean its incompatible with something that isn't praxeologically derived."
Right.
re: "The conclusions he derives in Prices and Production, however, are praxeological in the sense that they aren't based on empirical observation. It's a work of pure logic."
Hmmm. I'm not so sure about that. It's a theoretical work, to be sure. But it is not derived from premises about human action seeking satisfaction, so I'd hesitate to call it "praxeological". As you rightly say, of course, this doesn't mean that it's inconsistent with praxeological.
But basis in empirical observation seems to be a low bar for praxeology. If that's all that's required then Keynes's General Theory is praxeology too!
Tagged.
But it is not derived from premises about human action seeking satisfaction, so I'd hesitate to call it "praxeological".
Maybe Hayek did not put as much emphasis on the axiom of human action as Mises did, but Hayek was a follower of Menger (who do you think influenced Mises?) and did practice "methodological individualism". So, in that sense, Hayek's economics very much did revolve around rational, economizing man. In Prices and Production Hayek isn't writing a treatise on economics, so it wouldn't make much sense to spend a lot of time on methodology and elucidating the exact deductive path Hayek took to reach his conclusions. That doesn't mean there wasn't a method involved, and I think there is a lot of evidence in Hayek's prior writings (namely, Monetary Theory and the Trade Cycle) and from looking at his influences (Mises and Menger).
justinx0r: Ludwig Lachmann called himself an 'Austro-Keynesian' and his work has similarities to the Post-Keynesianism of today.
Ludwig Lachmann called himself an 'Austro-Keynesian' and his work has similarities to the Post-Keynesianism of today.
May you cite where he said/wrote that he was an austrokeynesian? I have read alot of Lachmann and I never heard him write such a thing.
My Blog: http://www.anarchico.net/
Production is 'anarchistic' - Ludwig von Mises
I wish, it was in an article I read but can't remember where I found it. I've been trying to find it for a while.
One of my econ professors at UTD, Peter Lewin, was a student of Lachmann and he wrote several bios of Lachmann, and he does not acknowledge this 'austro-keynesian' label. (he actually wrote the Lachmann bio for the Mises Institute)
Well I'm sure I didn't imagine what I read. It had to do with his and Keynes disequilibrium analysis and subjective expectations. I'll spend some more time looking for it - I'll PM you if/when I find it.
William posted this last week: Lachmann discussing the commonalities shared by the two schools, but he does not call himself an Austro-Keynesian therein.
Lachmann thought that Keynes took subjectivity to a far greater level than any Austrian. He was deeply influenced by Shackle, and in that sense he had some "Keynesian" qualities. However, he was an Austrian as far as market coordination went.
Lachmann goes on a bit about Popper, Keynes, and Austrianism briefly at the end of this lecture too:
http://www.youtube.com/watch?v=vvhR9XVIVmc
somewhere around the 1:09 mark
Also Jonathan sent me an article by Lachmann about Mises and Shackle; Ihaven't really read it yet but, if anyone wants it PM me and I'll Email it to them.
It may be helpful to see what Rothbard thought of Lachmann:
"I sound off at you on Lachmann because I’ve been appalled, since reading some of the papers written by the [summer] fellows out here [at the Institute for Humane Studies in Menlo Park, California] at the extent to which Lachmannia has permeated their thinking. I am convinced that Mises would have considered Lachmann (an institutionalist, nihilist, and Keynesian) an “anti-economist,” and he would have been right. Lachmann is not an Austrian at all. Back to Mises!"
Meh whateves, that comment doesn't mean anything. I can't comment much on the conclusions of Lachmann other than he seems very very interesting, and I think his work demands one take him very seriously, regardless of what conclusions I may agree or disagree with in the end. He certainly does not deserve to be the focus of character assassination. And he most certainly is an Austrian.
Mr Kuehn, as far as a neoclassical synthesis goes, especially on the micro level, you may want to get in touch with Paul A. Cleveland. He made the following lecture at the ASC this year.
Also, would your model utilise a representative agent(firm and consumer). I suspect you might find important characteristics such as Cantillon effects impossibly obscured by such an approach.
"When the King is far the people are happy." Chinese proverb
For Alexander Zinoviev and the free market there is a shared delight:
"Where there are problems there is life."
To go again on the Lachmann / Shackle thing:
http://socialdemocracy21stcentury.blogspot.com/search?q=lachmann
"As in a kaleidoscope, the constellation of forces operating in the system as a whole is ever changing." - Ludwig Lachmann
"When A Man Dies A World Goes Out of Existence" - GLS Shackle