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The spread of Keynesian economics : a comparison of the Belgian and Italian experiences

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  • Ivo Maes

    (National Bank of Belgium, Research Department)

Abstract

Keynesian economics dominated economic thought and macroeconomic policy-making in the 1950s and 1960s. However, the diffusion of Keynesian economics has been uneven. In this paper, we compare the spread of Keynesian economics in two continental European countries: Belgium and Italy. We focus on the post-World War II period, taking as the main message of Keynesian economics that the market is inherently unstable and that the government has a key role in economic life in steering effective demand. We further follow Coddington's distinction between "hydraulic", "disequilibrium" and "fundamentalist" Keynesianism. The study shows that Belgium and Italy were two countries were Keynesian economics gained ground only relatively late. The breakthrough of (hydraulic) Keynesianism came in areas which were close to the policy-making process: setting up national income accounts, the construction of macroeconomic models and correcting regional imbalances. The main difference between the two countries was the strong position of fundamentalist Keynesianism in the academic world in Italy, while in Belgium, disequilibrium Keynesianism was more influential.

Suggested Citation

  • Ivo Maes, 2007. "The spread of Keynesian economics : a comparison of the Belgian and Italian experiences," Working Paper Research 113, National Bank of Belgium.
    • Handle: RePEc:nbb:reswpp:200705-02
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    File URL: https://www.nbb.be/doc/ts/publications/wp/wp113en.pdf
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    References listed on IDEAS

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    1. Jean-Paul Abraham, 2003. "Monetary and Financial Thinking in Europe - Evidence from Four Decades of SUERF," SUERF Studies, SUERF - The European Money and Finance Forum, number 2003/3 edited by Morten Balling, May.
    2. Erik Buyst & Ivo Maes & Henk W. Plasmeijer & Evert Schoorl, 2005. "Comparing the Development of Economics during the Twentieth Century in Belgium and the Netherlands," History of Political Economy, Duke University Press, vol. 37(1), pages 61-78, Spring.
    3. Ivo Maes & Lucia Quaglia, 2003. "The process of European monetary integration : a comparison of the Belgian and Italian approaches," Working Paper Research 40, National Bank of Belgium.
    4. Ivo Maes & Lucia Quaglia, 2003. "The process of european monetary integration: a comparison of the belgian and italian approaches," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 56(227), pages 299-335.
    5. Ivo Maes & Lucia Quaglia, 2003. "The process of european monetary integration: a comparison of the belgian and italian approaches," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 56(227), pages 299-335.
    6. Ivo Maes & Erik Buyst, 2005. "Migration and Americanization: The special case of Belgian economics," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 12(1), pages 73-88.
    7. Coddington, Alan, 1976. "Keynesian Economics: The Search for First Principles," Journal of Economic Literature, American Economic Association, vol. 14(4), pages 1258-1273, December.
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    Cited by:

    1. Lepore, Amedeo, 2012. "L’andamento della spesa per l’intervento straordinario nel Mezzogiorno d’Italia, dalla golden age alla fine del XX secolo. (The trends in the expenditures of the extraordinary intervention in southern," De Computis "Revista Española de Historia de la Contabilidad". De Computis "Spanish Journal of Accounting History"., Asociación Española de Contabilidad y Administración de Empresas (AECA). Spanish Accounting and Business Administration Association., issue 16, pages 76-119, June.
    2. Ivo Maes, 2009. "The young Lamfalussy : an empirical and policy-oriented growth theorist," Working Paper Research 163, National Bank of Belgium.

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    More about this item

    Keywords

    Keynesian economics; Belgium; Italy; macroeconomic policy-making;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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