Critique of Keynesian Economics

This book brings together articles by international political economists on Keynesian economics and its legacy. The book begins with Don Patinkin's assessment of Keynes' early life and focuses attention on Keynes' contribution to monetary economics. Among the many controversies surrounding "The general theory", Axel Leijonhufvud takes the view that the Keynesian revolution began and stayed on the wrong track. Leland Yeager refutes the idea that Keynesian economics was responsible for the general prosperity in the indusrialized world immediately after the Second World War. Although Karl Brunner is not fundamentally against Keynes' methodological approach, he is critical of his reliance on fiscal rather than monetary policy. Whereas Terence Hutchison defends Keynes, both against his critics but also against Keynesians, and argues that Keynes would not have shared their interpretation of his work on fundamental grounds. Patrick Minford traces the roots of neoclassical economics, based on the concept of rational expectations, back to "the general theory". In the final chapter, Stephen Littlechild offers an alternative to Keynesian economics by focusing attention on the Austrian school.This book represents, therefore, for the first time a collection of appraisals of Keynesian economics' impact theory and policy that will be of use to all students of macroeconomics and the history of economic thought. Walter Allan is publishing director for the Institute of Economic Affairs in London and has held senior editorial positions with Allen and Unwin and Macmillan. He is the author of "Concise 'A' level Economics", "Economics at University" and co-author of "Competition and Choice in the Publishing industry".