Monday , December 11 2017
Home / Roger Farmer's Economic Window / Classical and New Keynesian Schools of Thought

Classical and New Keynesian Schools of Thought

Summary:
“There are two leading explanations for the very slow recovery in the unemployment rate, and the continuing low growth of labor productivity, in the aftermath of the Great Recession. One group of classical economists clings to pre-Keynesian ideas that blame the recession on bad economic policy. The second group of New Keynesians seeks to resuscitate failed interpretations of Keynes on which the profession gave up, rightly in my view, during the 1980s. Both groups are wrong.” (Pages 12-13, Prosperity For All)

Topics:
Roger Farmer considers the following as important:

This could be interesting, too:

Mark Thoma writes Exploring the Job Ladder to High-Productivity Firms

Mark Thoma writes Paul Krugman: The Republican War on Children

Tyler Cowen writes Sunday assorted links

Nick Rowe writes The Sustainable Bond-Finance Laffer Curve

“There are two leading explanations for the very slow recovery in the unemployment rate, and the continuing low growth of labor productivity, in the aftermath of the Great Recession. One group of classical economists clings to pre-Keynesian ideas that blame the recession on bad economic policy. The second group of New Keynesians seeks to resuscitate failed interpretations of Keynes on which the profession gave up, rightly in my view, during the 1980s. Both groups are wrong.” (Pages 12-13, Prosperity For All)

 
Roger Farmer
ROGER E. A. FARMER is a Distinguished Professor of Economics at UCLA and served as Department Chair from July 2008 through December 2012. He was the Senior Houblon-Norman Fellow at the Bank of England, January-December 2013.

Leave a Reply

Your email address will not be published. Required fields are marked *