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Against Rigid Rules - Keynes's Economic Theory

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Author Info
Elke Muchlinski (Freie Universitaet Berlin)
Abstract

This 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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File URL: http://129.3.20.41/eps/mac/papers/0503/0503018.pdf
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Paper provided by EconWPA in its series Macroeconomics with number 0503018.

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Length: 28 pages
Date of creation: 23 Mar 2005
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Handle: RePEc:wpa:wuwpma:0503018

Note: Type of Document - pdf; pages: 28
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Web page: http://129.3.20.41

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Related research
Keywords: 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

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  1. 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. [Downloadable!] (restricted)
  2. Samuels, Warren J, 1996. "Postmodernism and Economics: A Middlebrow View," Journal of Economic Methodology, Taylor and Francis Journals, vol. 3(1), pages 113-20, June.
  3. 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. [Downloadable!] (restricted)
  4. Kirman, Alan P, 1992. "Whom or What Does the Representative Individual Represent?," Journal of Economic Perspectives, American Economic Association, vol. 6(2), pages 117-36, Spring. [Downloadable!] (restricted)
  5. Tobin, James, 1983. "Monetary Policy: Rules, Targets, and Shocks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 15(4), pages 506-18, November. [Downloadable!] (restricted)
  6. 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.
  7. Freedman, Craig, 1995. "Animal Spirits in His Soup: A Look at the Methodology and Rhetoric of The General Theory," Journal of Economic Methodology, Taylor and Francis Journals, vol. 2(1), pages 79-104, June.
  8. Gilles Dostaler, 1995. "Keynes et Bretton Woods," Cahiers de recherche du Département des sciences économiques, UQAM 9502, Université du Québec à Montréal, Département des sciences économiques.
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