Palley on why Krugman and other New Keynesians are NOT Keynesians

Yes, while it is true that New Keynesians do agree with Post Keynesians (or classical-Keynesians, in the sense of the Old Classical Political Economy School revived by Sraffa) in many policy propositions, like the need for more stimulus, Tom is absolutely right that they do occupy a position in the policy debates which precludes real Keynesian ideas to become more generally accepted.

For the full video go here.


  1. He is a true Keynesian, indeed:

    "I believe that capitalism has a social purpose. The social purpose is to make sure we live well, we are happy, we have good income, and so on. And therefore you write the laws of capitalism, so that it produces that outcome." (At 10:42)


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