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On the Future of Keynesian Economics
Author(s) -
AHIAKPOR JAMES C. W.
Publication year - 2004
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.2004.00305.x
Subject(s) - economics , keynesian economics , dominance (genetics) , new classical macroeconomics , post keynesian economics , neoclassical economics , imperfect , principal (computer security) , macroeconomics , philosophy , biochemistry , chemistry , linguistics , gene , computer science , operating system
A bstract . Keynesianism continues to lose its dominance in macroeconomics. New Keynesians attempt to rescue it from irrelevance with models recognizing (1) the noninstantaneous adjustment of product prices, (2) imperfect knowledge, and (3) nonclearing labor markets. But these are conditions recognized in classical macroeconomics. The new, post‐, and neoclassical Keynesians also seem to be unaware that the five principal pillars upon which Keynes founded his economics, including his conception of saving, the multiplier process, and theory of interest, are badly flawed. Confronting evidence of these flaws will turn the future of Keynesianism into one of a struggle to sustain a dimming light.