Empiricism and the Keynesian tradition
Article Abstract:
Keynesian economists take pride in the superiority of their approach to economic analysis to that of the neoclassical school since Keynesian models are posited in the real world and carry historical weight. The application of empirical data to these models, however, has not proven to be an unmitigated success. Methodological problems have cropped up which have led economists to rely on older axiomatic and probabilistic models. John Maynard Keynes never really intended to break completely with the classical school of economics since he did not believe in statistical verification as the ultimate means to prove the effectiveness of economic models.
Publication Name: Review of Radical Political Economics
Subject: Political science
ISSN: 0486-6134
Year: 1991
User Contributions:
Comment about this article or add new information about this topic:
The notion of disequilibrium, the multiplier, and the endogenous supply of money
Article Abstract:
John Maynard Keynes' theory explaining the relationship between the buffer stock adjustment principle and equilibrium raises some problems. According to the Keynesian theory, inventories of finished goods increase when aggregate supply exceeds aggregate expenditures in a given time period, prompting businesses to reduce production until they offer employment whose level is consistent with equilibrium. This principle, however, fails to consider variations in working capital as well as the relationship between the endogenous supply of money and the processes of output adjustment.
Publication Name: Review of Radical Political Economics
Subject: Political science
ISSN: 0486-6134
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
A classical-Keynesian model of macroeconomic fluctuations
Article Abstract:
A macroeconomic model showing how the capitalist economy creates business cycles in an endogenous manner is presented. Relationships affecting market economies, such as competing claims on income, wage-profit relation and the investment-profits interdependence are shown in the model. Such relationships hinder full employment and equilibrium predicted by the neoclassical theory.
Publication Name: Review of Radical Political Economics
Subject: Political science
ISSN: 0486-6134
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Pain and pride in Mexico. The best revolution of the millennium. Requiem for a millennium
- Abstracts: Order out of anarchy: the international law of war. The constitution of liberty to tax and spend. Privateering and the private production of naval power
- Abstracts: Can the state create cooperation?: problems of reforming the labor supply in France. Does labor matter? Institutions, labor unions and pension reform in France and the United States
- Abstracts: Conspiracy and the policy process: a case study of the New Zealand experiment. Learning from politics? The casual interplay between government performance and political ideology
- Abstracts: Hedonic psychology and the ambiguities of "welfare". A global diffusion model of e-governance. Children's rights in Turkey