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The Other J.M.: John Maurice Clark and the Keynesian Revolution

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  • Luca Fiorito
  • Matías Vernengo

Abstract

This paper suggests that Clark's views regarding the Keynesian Revolution illuminate some of the limitations of the Keynesian orthodoxy that developed after the war, bringing more institutional detail and a greater preoccupation with dynamic analysis. Clark developed the multiplier in dynamic terms and coupled it with the accelerator to provide the framework for business cycle theory. His analysis was not formalized and emphasized time lags and non-linearities, similar to Harrod. In addition, Clark was concerned with the inflationary consequences of Keynesian policies and he was dissatisfied with those mechanical interpretations of the income flow analysis, which came to be known as hydraulic Keynesianism. Clark's policy conclusions emphasized the need of balance between employment creation and price stability, and the need of cooperation between social groups.

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  • Luca Fiorito & Matías Vernengo, 2009. "The Other J.M.: John Maurice Clark and the Keynesian Revolution," Journal of Economic Issues, Taylor & Francis Journals, vol. 43(4), pages 899-916.
    • Handle: RePEc:mes:jeciss:v:43:y:2009:i:4:p:899-916
    DOI: 10.2753/JEI0021-3624430404
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    References listed on IDEAS

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    1. Matias Vernengo, 2006. "A Hands-off Central Banker? Marriner S. Eccles and the Federal Reserve Policy, 1934-1951," Working Paper Series, Department of Economics, University of Utah 2006_04, University of Utah, Department of Economics.
    2. Robert W. Dimand, 2002. "John Maurice Clark's contribution to the genesis of the multiplier analysis: a response to Luca Fiorito," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 10(1), pages 85-91.
    3. Fiorito, Luca, 2007. "An Institutionalist's Journey into the Years of High Theory: John Maurice Clark on the Accelerator-Multiplier Interaction," Journal of the History of Economic Thought, Cambridge University Press, vol. 29(4), pages 437-452, December.
    4. Besomi, Daniele, 2001. "Harrod's Dynamics and the Theory of Growth: The Story of a Mistaken Attribution," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 25(1), pages 79-96, January.
    5. Fritz Machlup, 1939. "Period Analysis and Multiplier Theory," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 54(1_Part_1), pages 1-27.
    6. Paul A. Samuelson, 1939. "A Synthesis of the Principle of Acceleration and the Multiplier," Journal of Political Economy, University of Chicago Press, vol. 47(6), pages 786-786.
    7. Rutherford, Malcolm & Desroches, C. Tyler, 2008. "The Institutionalist Reaction To Keynesian Economics," Journal of the History of Economic Thought, Cambridge University Press, vol. 30(1), pages 29-48, March.
    8. Robert Leeson, 1997. "The Eclipse of the Goal of Zero Inflation," History of Political Economy, Duke University Press, vol. 29(3), pages 445-496, Fall.
    9. Matias Vernengo & Louis-Philippe Rochon, 2001. "Kaldor and Robinson on money and growth," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 8(1), pages 75-103.
    10. Colander, David, 1984. "Was Keynes a Keynesian or a Lernerian?," Journal of Economic Literature, American Economic Association, vol. 22(4), pages 1572-1575, December.
    11. David C. Colander & Harry Landreth (ed.), 1996. "The Coming Of Keynesianism To America," Books, Edward Elgar Publishing, number 451.
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    1. Fahd Boundi-Chraki & Ignacio Perrotini-Hernández, 2024. "Revisiting the Classical Theory of Investment: An Empirical Assessment from the European Union," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 22(1), pages 63-89, March.
    2. Alexandre Chirat & Basile Clerc, 2023. "Convergence on inflation and divergence on price-control among Post-Keynesian pioneers: insights from Galbraith and Lerner," EconomiX Working Papers 2023-4, University of Paris Nanterre, EconomiX.
    3. Esteban Pérez Caldentey & Matías Vernengo, 2016. "Reading Keynes in Buenos Aires: Prebisch and the Dynamics of Capitalism," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 40(6), pages 1725-1741.
    4. Vernengo, Matías & Pérez Caldentey, Esteban, 2012. "Portrait of the economist as a young man: Raúl Prebisch's evolving views on the business cycle and money, 1919-1949," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.

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    JEL classification:

    • B20 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - General
    • 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

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