Thursday, March 26, 2015

Krugman is not a real Keynesian

From The Boston Globe:
Keynes’s insights have enormous practical importance, according to Lance Taylor and Duncan Foley of the New School. Temperamentally opposite — Foley a brilliant theorist, Taylor a pragmatist influential in developing nations — they jointly received the Leontief Prize for Advancing the Frontiers of Economic Thought at Tufts University’s Global Development and Environment Institute on Monday. But isn’t Keynes now mainstream? No, say Foley and Taylor. The mainstream still sees economies as inherently moving to an optimal equilibrium, as Wicksell did. It still says demand causes short-run fluctuations, but only supply factors, such as the capital stock and technology, can affect long-run growth.
Read rest here. Not a surprise for the readers of this blog.

1 comment:

  1. Don't know what other think, but the title of the Globe's article detracts from the interesting content of the article on Taylor and Foley

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