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Varieties of Keynesianism

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Abstract

Recent claims, particularly in Paul Krugman's column and blog, on the superiority of the Hicks-Modigliani version of Keynesian economics calls for a re-thinking of the issues raised in the early controversies over what Joan Robinson called †bastard Keynesianism†. †Good, old-fashioned, Keynesian economics†(GOKE) substitutes the general and unmotivated assumption of downward money wage rigidity for the detailed examination of the varied social coordination problems that characterize modern capitalist economies. This underrates Keynes' role as a precursor of modern information economics, and risks losing significant policy insights. The political economy background of the New Classical counter-revolution in economic theory, stemming from the unravelling of the †capital-labor accord†of the SecondWorldWar, provides some important lessons for the development of a macroeconomic analysis that is relevant to the real problems of modern capitalist economies.

Suggested Citation

  • Duncan Foley, 2014. "Varieties of Keynesianism," SCEPA working paper series. 2014-4, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    • Handle: RePEc:epa:cepawp:2014-4
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    1. Diamond, Peter A, 1982. "Aggregate Demand Management in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 881-894, October.
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    Cited by:

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    2. Daniele Tavani & Luke Petach, 2021. "Firm beliefs and long-run demand effects in a labor-constrained model of growth and distribution," Journal of Evolutionary Economics, Springer, vol. 31(2), pages 353-377, April.
    3. Wolnicki Miron & Piasecki Ryszard, 2015. "The Realities and Illusions of the XXIst Century Social Contract," Journal of Intercultural Management, Sciendo, vol. 7(2), pages 165-179, June.
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    Keywords

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    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money

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