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UNCERTAINTY AND EXPECTATIONS IN SHACKLE'S THEORY OF CAPITAL AND INTEREST
Author(s) -
Meacci Ferdinando
Publication year - 2009
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/j.1467-999x.2008.00327.x
Subject(s) - shackle , economics , context (archaeology) , disappointment , capital (architecture) , neoclassical economics , strengths and weaknesses , positive economics , macroeconomics , keynesian economics , epistemology , philosophy , psychology , social psychology , paleontology , history , oceanography , archaeology , biology , geology
This paper is focused on the macroeconomic aspects of Shackle's theory of capital and interest. The paper highlights the strengths and weaknesses of this theory. Among the strengths is Shackle's treatment of historical time, expectations and their disappointment, ex ante and ex post magnitudes, macroeconomic equilibrium and disequilibrium. Among the weaknesses is Shackle's failure to grasp the difference between the theory of interest as such and the theory of the money rate of interest as well as the difference between the theory of capital in the context of logical time (the old Austrian approach) and the theory of capital in the context of historical time (Hayek's and Shackle's preferred approach). In natural science, what is thought is built upon what is seen: but in economics, what is seen is built upon what is thought. (Shackle, 1972, p. 66)