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Milton Friedman: Constructing an Anti-Keynes

Author

Listed:
  • Craig Freedman

    (Department of Economics, Macquirie University)

  • Geoff C. Harcourt

    (School of Economics, Australian School of Business, the University of New South Wales)

  • Peter Kriesler

    (School of Economics, Australian School of Business, the University of New South Wales)

  • John Nevilet

    (School of Economics, Australian School of Business, the University of New South Wales)

Abstract

The paper considers Keynes’s major contributions before "The General Theory", namely "A Tract on Monetary Reform" and "A Treatise on Money", and shows that they were close to the views which Friedman would later develop. However, "The General Theory of Employment, Interest and Money" represented a major challenge to the orthodoxy of the time, and it was to this that Friedman radically objected. We identify the main areas in which Keynes departed from the mainstream theory of the time, and show how Friedman attempted to undermine each of Keynes’s major contributions and the extent to which he was successful. Friedman regarded Keynes’s contributions as detrimental to, and a definitive step backward for, the economics profession.

Suggested Citation

  • Craig Freedman & Geoff C. Harcourt & Peter Kriesler & John Nevilet, 2013. "Milton Friedman: Constructing an Anti-Keynes," Discussion Papers 2013-35, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2013-35
    as

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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2013-35.pdf
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    References listed on IDEAS

    as
    1. J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 51(2), pages 209-223.
    2. G. C. Harcourt, 2008. "The Structure of Post-Keynesian Economics," Palgrave Macmillan Books, in: Mathew Forstater & L. Randall Wray (ed.), Keynes for the Twenty-First Century, chapter 0, pages 185-197, Palgrave Macmillan.
    3. Milton Friedman, 1957. "Introduction to "A Theory of the Consumption Function"," NBER Chapters, in: A Theory of the Consumption Function, pages 1-6, National Bureau of Economic Research, Inc.
    4. Milton Friedman & Anna J. Schwartz, 1963. "A Monetary History of the United States, 1867–1960," NBER Books, National Bureau of Economic Research, Inc, number frie63-1, March.
    5. Harcourt,G. C. & Karmel,P. H. & Wallace,R. H., 1967. "Economic Activity," Cambridge Books, Cambridge University Press, number 9780521094276.
    6. Asimakopulos, A, 1982. "Keynes' Theory of Effective Demand Revisited," Australian Economic Papers, Wiley Blackwell, vol. 21(38), pages 18-36, June.
    7. G. C. Harcourt, 1995. "Capitalism, Socialism and Post-Keynesianism," Books, Edward Elgar Publishing, number 206.
    8. Hahn, F H, 1971. "Professor Friedman's Views on Money," Economica, London School of Economics and Political Science, vol. 38(149), pages 61-80, February.
    9. David Laidler, 2015. "Three revolutions in macroeconomics: their nature and influence," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 22(1), pages 1-25, February.
    10. Friedman, Milton, 2002. "Capitalism and Freedom," University of Chicago Press Economics Books, University of Chicago Press, number 9780226264202.
    11. Milton Friedman, 1957. "A Theory of the Consumption Function," NBER Books, National Bureau of Economic Research, Inc, number frie57-1, March.
    12. Milton Friedman & L. J. Savage, 1948. "The Utility Analysis of Choices Involving Risk," Journal of Political Economy, University of Chicago Press, vol. 56, pages 279-279.
    13. Friedman, Milton, 2002. "Capitalism and Freedom," University of Chicago Press Economics Books, University of Chicago Press, number 9780226264219, Febrero.
    14. G. J. Stigler, 1937. "A Generalization of the Theory of Imperfect Competition," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 19(3), pages 707-717.
    Full references (including those not matched with items on IDEAS)

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Piketty's contribution to unpacking inequality: timely and relevant
      by Vishnu Padayachee, Distinguished Professor and Derek Schrier and Cecily Cameron Chair in Development Economics, School of Economics and Business Sciences, University of the Witwatersrand in The Conversation on 2015-09-29 09:45:09

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    More about this item

    Keywords

    Friedman; Keynes; History of macroeconomics; Macroeconomic policy;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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