Uncertainty And Expectations In Shackle'S Theory Of Capital And Interest
This paper is focused on the macroeconomic aspects of Shackle's theory of capital and interest. The paper highlights the strengths and weaknesses of this theory. Among the strengths is Shackle's treatment of historical time, expectations and their disappointment, ex ante and ex post magnitudes, macroeconomic equilibrium and disequilibrium. Among the weaknesses is Shackle's failure to grasp the difference between the theory of interest as such and the theory of the money rate of interest as well as the difference between the theory of capital in the context of logical time (the old Austrian approach) and the theory of capital in the context of historical time (Hayek's and Shackle's preferred approach). In natural science, what is thought is built upon what is seen: but in economics, what is seen is built upon what is thought. ( Shackle, 1972 , p. 66) Copyright © 2008 The Author. Journal compilation © 2008 Blackwell Publishing Ltd.
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Volume (Year): 60 (2009)
Issue (Month): 2 (05)
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References listed on IDEAS
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- Kregel, J A, 1976. "Economic Methodology in the Face of Uncertainty: The Modelling Methods of Keynes and the Post-Keynesians," Economic Journal, Royal Economic Society, vol. 86(342), pages 209-225, June.
- J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, Oxford University Press, vol. 51(2), pages 209-223.
- Harcourt,G. C., 2008. "The Structure of Post-Keynesian Economics," Cambridge Books, Cambridge University Press, number 9780521067539, January.