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Six More Refuted Doctrines: A Comment on Quiggin
Author(s) -
King J. E.
Publication year - 2010
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2010.00050.x
Subject(s) - economics , ricardian equivalence , keynesian economics , unemployment , flexibility (engineering) , macroeconomics , neoclassical economics , monetary economics , fiscal policy , management
In this comment on Quiggin (2009), I identify an additional six doctrines that have been refuted by the global financial crisis. These are: rational expectations; Ricardian equivalence; only interest rates matter (for monetary policy); downward flexibility in wages and prices is always a good thing; unemployment is always voluntary (Say’s Law); and the New Neoclassical Synthesis in macroeconomics. I conclude by suggesting some foundations for an improved macroeconomics, drawing on Marx and Keynes.