Economics Questions

Re: History of Economics and Keynesianism

Stranger — Sat, 13 Jun 2009 19:04:39 GMT

Inflationism, like communism, has always been around. Keynes gave them an ideological rebirth.

The reason Keynesianism is accepted by academics is that defending another school of thought would mean denouncing the people who write their paychecks.

Re: History of Economics and Keynesianism

nirgrahamUK — Sat, 13 Jun 2009 19:03:38 GMT

Lilburne:
The key to Keynes’s contribution was his realization that liquidity preference — the desire of individuals to hold liquid monetary assets — can lead to situations in which effective demand isn’t enough to employ all the economy’s resources.

lolz for not mentioning prices.

Re: History of Economics and Keynesianism

Daniel James Sanchez — Sat, 13 Jun 2009 18:25:55 GMT

Individualist:
If Keynesian economics took hold of academia almost immediately adter Keynes' General Theory was published, what school dominated academia up until that time? Was it similar?

I would say Alfred Marshall's view was the one overthrown by Keynes. Irving Fisher had some time in the sun, but the '29 crash ruined his reputation along with his finances. Marshall, although pointlessly mathematical like Keynes, believed in long-run equilibria in free markets, unlike Keynes.

Individualist:
I mean, what reasons would mainstream economists give for their acceptance of Keynesianism?

Krugman, Keynes greatest champion, wrote:

The key to Keynes’s contribution was his realization that liquidity preference — the desire of individuals to hold liquid monetary assets — can lead to situations in which effective demand isn’t enough to employ all the economy’s resources.

Therefore, according to Krugman and some other mainstreamers, government spending must step in to fill the gap in effective demand.

Re: History of Economics and Keynesianism

Individualist — Sat, 13 Jun 2009 03:05:57 GMT

*bump*

Re: History of Economics and Keynesianism

Individualist — Fri, 12 Jun 2009 00:05:29 GMT

I apologize for the absence.

Lilburne:

Individualist:
When did Keynesianism become the dominant school in economics circles?

Shortly after Keynes' General Theory was published in 1936.

If Keynesian economics took hold of academia almost immediately adter Keynes' General Theory was published, what school dominated academia up until that time? Was it similar?

Lilburne:
Individualist:
Why is Keynesianism the school of economics accepted by the academics? Why is the Austrian school rejected?

Keynesianism prescribes an important, prestigious role for the economist in managing monetary policy. Austrianism prescribes a hands-off approach, and no cushy government jobs for economists. Academics generally subscribe to doctrines as dictated by their interests.

I mean, what reasons would mainstream economists give for their acceptance of Keynesianism?

Re: History of Economics and Keynesianism

Daniel James Sanchez — Tue, 09 Jun 2009 03:12:19 GMT

Individualist:
When did Keynesianism become the dominant school in economics circles?

Shortly after Keynes' General Theory was published in 1936.

Individualist:
What do modern economists say about the New Deal?

Mainstream economists think it was a mixed bag, but overall better than doing nothing.

Individualist:
Why is Keynesianism the school of economics accepted by the academics? Why is the Austrian school rejected?

Keynesianism prescribes an important, prestigious role for the economist in managing monetary policy. Austrianism prescribes a hands-off approach, and no cushy government jobs for economists. Academics generally subscribe to doctrines as dictated by their interests.

Re: History of Economics and Keynesianism

Andrew Cain — Tue, 09 Jun 2009 02:38:16 GMT

Hayek and His Lamentable Contemporaries

http://mises.org/multimedia/mp3/rothbard/hoet/6.mp3

History of Economics and Keynesianism

Individualist — Tue, 09 Jun 2009 02:35:32 GMT

When did Keynesianism become the dominant school in economics circles? Was it during the New Deal? What do modern economists say about the New Deal? On what do they base these conclusions? Why is Keynesianism the school of economics accepted by the academics? Why is the Austrian school rejected?