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The Classical-Keynesian Paradigm: Policy Debate in Contemporary Era

Author

Listed:
  • Gul, Ejaz
  • Chaudhry, Imran Sharif
  • Faridi, Muhammad Zahir

Abstract

For almost a century, the famous C-K paradigm (formally known as Classics – Keynesian Paradigm) has been the apex of economic debate and research. The paradigm represents two schools of thoughts which, somehow, have prevailed till now. Economists who believe in either of the two schools have been at loggerheads, and they still are, to prove one theory better than the other. Numerous economic scholars of present era believe that with the changes that have occurred in the economic system, the world is turning back to classical model. But, there are others who believe that Keynes theory is still alive and valid. In this paper, we have tried to draw a brief comparison that highlights the major differences between the two theories with specific reference to the economic, political and social environment prevailing at time when these theories were generated. Paper also discusses the relevance of unending policy debate about these theories in the current era with special emphasis on policy implications with a view to draw pertinent lessons for the present and future.

Suggested Citation

  • Gul, Ejaz & Chaudhry, Imran Sharif & Faridi, Muhammad Zahir, 2014. "The Classical-Keynesian Paradigm: Policy Debate in Contemporary Era," MPRA Paper 53920, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:53920
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    File URL: https://mpra.ub.uni-muenchen.de/53920/2/MPRA_paper_53920.pdf
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    References listed on IDEAS

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    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. On Macroeconomics After the Financial Crisis
      by bbatiz in NEP-HIS blog on 2014-06-04 00:23:29

    More about this item

    Keywords

    Classical; Keynesian; economics; theories; policy; debate; implications;

    JEL classification:

    • B10 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - General
    • B11 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Preclassical (Ancient, Medieval, Mercantilist, Physiocratic)
    • B12 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Classical (includes Adam Smith)
    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B2 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics

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