Profit Expectations and Confidence: Some unresolved issues in the Austrian/Post-Keynesian debate
Austrian and Post-Keynesian economists both continue to make important contributions to subjectivism in economics. Yet, as the ongoing debate between members of the two schools demonstrates, Austrians and Post-Keynesians have very different views about the possibility of intertemporal coordination in a market economy. This paper returns to the debate between Hayek and Keynes in order to respond to a contemporary Austrian critique of Keynes's theory of expectations. The paper shows that the fundamental difference between the two schools ultimately boils down to the nature of conventional expectations and the question of confidence. If the conventional expectation holds to assume the future will look enough like the present to give investors confidence in their decisions, Hayek's arguments about the possibility of intertemporal coordination merit attention. If, however, this convention does not hold, as Keynes thought was sometimes likely, the self-regulating potential of a market economy is called into question.
Volume (Year): 13 (2001)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/CRPE20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/CRPE20|
References listed on IDEAS
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.:
- J. Snippe, 1987. "Intertemporal Coordination and the Economics of Keynes: Comment on Garrison," History of Political Economy, Duke University Press, vol. 19(2), pages 329-334, Summer.
- Lachmann, Ludwig M, 1976. "From Mises to Shackle: An Essay on Austrian Economics and the Kaleidic Society," Journal of Economic Literature, American Economic Association, vol. 14(1), pages 54-62, March.
- William Butos & Roger Koppl, 1993. "Hayekian expectations: Theory and empirical applications," Constitutional Political Economy, Springer, vol. 4(3), pages 303-329, September.
- Koppl, Roger & Yeager, Leland B., 1996. "Big Players and Herding in Asset Markets: The Case of the Russian Ruble," Explorations in Economic History, Elsevier, vol. 33(3), pages 367-383, July.
- Bateman, Bradley W, 1991. "Das Maynard Keynes Problem: Review Article," Cambridge Journal of Economics, Oxford University Press, vol. 15(1), pages 101-111, March.
- Laurence S. Moss & Karen I. Vaughn, 1986. "Hayek's Ricardo Effect: A Second Look," History of Political Economy, Duke University Press, vol. 18(4), pages 545-565, Winter.
- William N. Butos & Roger G. Koppl, 1995. "The Varieties of Subjectivism: Keynes and Hayek on Expectations," Method and Hist of Econ Thought 9505001, EconWPA, revised 17 May 1995.
- Harcourt, G C, 1969.
"Some Cambridge Controversies in the Theory of Capital,"
Journal of Economic Literature,
American Economic Association, vol. 7(2), pages 369-405, June.
- Harcourt,G. C., 1972. "Some Cambridge Controversies in the Theory of Capital," Cambridge Books, Cambridge University Press, number 9780521096720, October.
- Hicks, J. R., 1979. "Critical Essays in Monetary Theory," OUP Catalogue, Oxford University Press, number 9780198284239, December.
- Rosser, J Barkley, Jr, 1978. "Continuity and Capital-Reversal: Comment," Economic Inquiry, Western Economic Association International, vol. 16(1), pages 143-46, January.
- Davis,John B., 1994.
"Keynes's Philosophical Development,"
Cambridge University Press, number 9780521419024, October.
- J. M. Keynes, 1937. "The General Theory of Employment," The Quarterly Journal of Economics, Oxford University Press, vol. 51(2), pages 209-223.
- Yeager, Leland B & Burmeister, Edwin, 1978. "Continuity and Capital-Reversal: Reply," Economic Inquiry, Western Economic Association International, vol. 16(1), pages 147-49, January.
- Roger W. Garrison, 1987. "Full Employment and Intertemporal Coordination: A Rejoinder," History of Political Economy, Duke University Press, vol. 19(2), pages 335-341, Summer.
- Roy J. Rotheim, 1990. "Organicism and the Role of the Individual in Keynes' Thought," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 12(2), pages 316-326, January.
- Yeager, Leland B, 1976. "Toward Understanding Some Paradoxes in Capital Theory," Economic Inquiry, Western Economic Association International, vol. 14(3), pages 313-46, September.
When requesting a correction, please mention this item's handle: RePEc:taf:revpoe:v:13:y:2001:i:1:p:59-80. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.