Title: Classical-Keynesian political economy and neoclassical economics
Abstract: In recent years, the belief in the self-regulating capacity of satisfactorily functioning markets has increased, at least at the level of policy-making. This is expressed by the privatization and deregulation movement and is accompanied by a clear tendency to return to pre-Keynesian neoclassical equilibrium theory. The textbook by Barro (1984) is but one important indication of this. The success of the ‘rational expectations school’ and the rise of neo-Austrian ‘disequilibrium theory’ are other indicators of the tendency to take up pre-Keynesian strands of thought; this is reinforced by political factors: the recent breakdown of centrally planned socialism seems to hail the ultimate triumph of liberalism. Finally, it is particularly sad that, in most countries, the parties of the centre and even social democratic parties have abandoned the venerable Keynesian full employment goal and now aim at a ‘satisfactory’ level of employment.
Publication Year: 1996
Publication Date: 1996-11-13
Language: en
Type: book-chapter
Indexed In: ['crossref']
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Cited By Count: 2
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