Samuelson's Neoclassical Synthesis in the Context of Growth Economics, 1956-1967

Samuelson (1952: 60) introduced the term «neoclassical synthesis” and used it later in the 1955 3rd edition of Economics: An Introductory Analysis to refer to a “consensus” among American economists. In the 1960s when growth theory emerged as a major issue, Samuelson modified his view and in the 6th edition of Economics, the term assumed a specific meaning. As long as it was assumed that the economy was managed on a Keynesian-basis in the short-run, the neoclassical growth model was considered the most appropriate tool to analyze full-employment growth. This “new” approach of the synthesis was challenged in debates on income distribution dynamics and expectations, opposing the protagonists in the Cambridge controversy. We draw on original archival material from Duke University and Cambridge University in the UK to try to clarify some of the hidden dimensions of Samuelson's synthesis and the debates it triggered.