Against Rigid Rules - Keynes's Economic Theory
AbstractThis paper provides textual evidence of Keynes�s position on monetary policy and shaping international monetary relations. One result of my contribution is that the famous dichotomy 'rules versus discretion' is of no relevance to his economic theory, because he used the term 'rules' not in the meaning of a formal brilliantly designed notion. He definitely made a distinction between non-rigidly-fixed-rules and discretion. I give an explanation why his economic theory is not compatible with principles of constructivism, empiricism and ontological realism by referring to a key term of his economic writings, i.e., discretionary decision.
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Bibliographic InfoPaper provided by EconWPA in its series Macroeconomics with number 0503018.
Length: 28 pages
Date of creation: 23 Mar 2005
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Note: Type of Document - pdf; pages: 28
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Key words: History of Economic Thought since 1925; Methodology; Central Banking; International Monetary Arrangements and Institutions;
Find related papers by JEL classification:
- B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
- B - Schools of Economic Thought and Methodology
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
- F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-04-16 (All new papers)
- NEP-HPE-2005-04-16 (History & Philosophy of Economics)
- NEP-MAC-2005-04-16 (Macroeconomics)
- NEP-PKE-2005-04-16 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan P. Kirman, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-136, Spring.
- King, Mervyn, 1997. "Changes in UK monetary policy: Rules and discretion in practice," Journal of Monetary Economics, Elsevier, vol. 39(1), pages 81-97, June.
- Baert, Patrick, 1996. "Realist Philosophy of the Social Sciences and Economics: A Critique," Cambridge Journal of Economics, Oxford University Press, vol. 20(5), pages 513-22, September.
- Tobin, James, 1983. "Monetary Policy: Rules, Targets, and Shocks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(4), pages 506-18, November.
- Gilles Dostaler, 1995. "Keynes et Bretton Woods," Cahiers de recherche du DÃ©partement des sciences Ã©conomiques, UQAM 9502, Université du Québec à Montréal, Département des sciences économiques.
- Craig Freedman, 1995. "Animal spirits in his soup: a look at the methodology and rhetoric of The General Theory," Journal of Economic Methodology, Taylor & Francis Journals, vol. 2(1), pages 79-104.
- McKinnon, Ronald I, 1993. "The Rules of the Game: International Money in Historical Perspective," Journal of Economic Literature, American Economic Association, vol. 31(1), pages 1-44, March.
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