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Against Rigid Rules - Keynes's Economic Theory

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  • Elke Muchlinski

    (Freie Universitaet Berlin)

Abstract

This paper provides textual evidence of Keynes´s position on monetary policy and shaping international monetary relations. One result of my contribution is that the famous dichotomy 'rules versus discretion' is of no relevance to his economic theory, because he used the term 'rules' not in the meaning of a formal brilliantly designed notion. He definitely made a distinction between non-rigidly-fixed-rules and discretion. I give an explanation why his economic theory is not compatible with principles of constructivism, empiricism and ontological realism by referring to a key term of his economic writings, i.e., discretionary decision.

Suggested Citation

  • Elke Muchlinski, 2005. "Against Rigid Rules - Keynes's Economic Theory," Macroeconomics 0503018, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpma:0503018
    Note: Type of Document - pdf; pages: 28
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    References listed on IDEAS

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    Cited by:

    1. Elke Muchlinski, 2012. "Keynes’s Economic Theory – Judgement under Uncertainty," Chapters, in: Thomas Cate (ed.), Keynes’s General Theory, chapter 3, Edward Elgar Publishing.
    2. Elke Muchlinski, 2005. "The Lucas Critique and Keynes Response.Considering the History of Macroeconomics," Macroeconomics 0503019, University Library of Munich, Germany.

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    More about this item

    Keywords

    Key words: History of Economic Thought since 1925; Methodology; Central Banking; International Monetary Arrangements and Institutions;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • B - Schools of Economic Thought and Methodology
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions

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