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The Fall and Rise of Keynesian Economics

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  • ALAN S. BLINDER
Abstract
Keynesian economics came under much criticism in the 1970s This paper argues that the decline in Keynesian economics and the rise in, notably, new classical economics in this period related to their respective theoretical appeal rather than their ability to explain developments in the macroeconomy. As this has become increasingly recognized, and with the development of sound microeconomic foundations, Keynesian economics has again been on the rise.

Suggested Citation

  • Alan S. Blinder, 1988. "The Fall and Rise of Keynesian Economics," The Economic Record, The Economic Society of Australia, vol. 64(4), pages 278-294, December.
    • Handle: RePEc:bla:ecorec:v:64:y:1988:i:4:p:278-294
    DOI: 10.1111/j.1475-4932.1988.tb02067.x
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    2. Alberto Bagnai & Christian Alexander Mongeau Ospina, 2014. "The a/simmetrie annual macroeconometric model of the Italian economy: structure and properties," a/ Working Papers Series 1405, Italian Association for the Study of Economic Asymmetries, Rome (Italy).
    3. Wen-Ya Chang & Ching-Chong Lai, 1999. "Efficiency wages and the balanced budget theorem," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 27(3), pages 314-324, September.
    4. Ossama Mikhail & Curtis J. Eberwein & Jagdish Handa, 2003. "The Measurement of Persistence and Hysteresis in Aggregate Unemployment," Method and Hist of Econ Thought 0311002, University Library of Munich, Germany.
    5. David W. R. Gruen & Jenny Wilkinson, 1994. "Australia's Real Exchange Rate–Is it Explained by the Terms of Trade or by Real Interest Differentials?," The Economic Record, The Economic Society of Australia, vol. 70(209), pages 204-219, June.
    6. Aurélien Goutsmedt & Erich Pinzon-Fuchs & Matthieu Renault & Francesco Sergi, 2015. "Criticizing the Lucas Critique: Macroeconometricians' Response to Robert Lucas," Post-Print halshs-01179114, HAL.
    7. Aurélien Goutsmedt & Danielle Guizzo & Francesco Sergi, 2019. "An Agenda without a Plan. Robert E. Lucas’s Trajectory through the Public Debate [Un programme sans plan. La trajectoire de Robert E. Lucas à travers le débat public]," Post-Print hal-03228955, HAL.
    8. Ronald Schettkat & Sonja Jovicic, 2016. "Macroeconomic revolution on shaky grounds: Lucas/Sargent critique’s inherent contradictions," Schumpeter Discussion Papers SDP16005, Universitätsbibliothek Wuppertal, University Library.
    9. Robert J. Gordon, 1989. "Symposium on Macroeconomics 1 Fresh Water, Salt Water, and Other Macroeconomic Elixirs," The Economic Record, The Economic Society of Australia, vol. 65(2), pages 177-184, June.
    10. Neil R. Ericsson & John S. Irons, 1995. "The Lucas critique in practice: theory without measurement," International Finance Discussion Papers 506, Board of Governors of the Federal Reserve System (U.S.).
    11. van de Klundert, T.C.M.J. & van Schaik, A.B.T.M., 1990. "Liquidity constraints and the Keynesian corridor," Research Memorandum FEW 429, Tilburg University, School of Economics and Management.
    12. Chung‐Cheng Lin & Ching‐Chong Lai, 1998. "Efficiency Wages, Partial Wage Rigidity, and Money Nonneutrality," Southern Economic Journal, John Wiley & Sons, vol. 65(2), pages 331-340, October.
    13. Guilherme Spinato Morlin, 2021. "Inflation and Macroeconomics in the US during the Golden Age," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 10(1), pages 107-130.
    14. Rob Gandy & Chris Mulhearn, 2021. "Allowing for unemployment in productivity measurement," SN Business & Economics, Springer, vol. 1(1), pages 1-38, January.
    15. David W.R. Gruen & Jenny Wilkinson, 1991. "Australia’s Real Exchange Rate – Is it Explained by the Terms of Trade or by Real Interest Differentials?," RBA Research Discussion Papers rdp9108, Reserve Bank of Australia.
    16. Sonja Jovicic & Ronald Schettkat, 2013. "Consistently wrong: Neoclassical micro-foundations and the macroeconomic policy ineffectiveness hypothesis," Schumpeter Discussion Papers SDP13010, Universitätsbibliothek Wuppertal, University Library.
    17. Robert Leeson, 1994. "The Rise and Fall and Fall of Keynesian Economics?," The Economic Record, The Economic Society of Australia, vol. 70(210), pages 262-266, September.
    18. Ram Chandra Acharya, 2019. "Relationship between Money Supply, Income and Price Level in Nepal," NRB Economic Review, Nepal Rastra Bank, Economic Research Department, vol. 31(1), pages 1-20, April.
    19. Snowdon, Brian & Vane, Howard R., 1996. "The development of modern macroeconomics: Reflections in the light of Johnson's analysis after twenty-five years," Journal of Macroeconomics, Elsevier, vol. 18(3), pages 381-401.
    20. Lin, Chung-Cheng & Yang, C. C., 2003. "Tournaments, minimum wage, and money non-neutrality," Journal of Macroeconomics, Elsevier, vol. 25(4), pages 481-489, December.
    21. Thierry Laurent & Hélène Zajdela, 1999. "Emploi, salaire et coordination des activités," Cahiers d'Économie Politique, Programme National Persée, vol. 34(1), pages 67-100.
    22. Juergen B. Donges, 1989. "The 1980s Economic Growth Weakness in Europe: Focusing on the Supply Side," The Economic Record, The Economic Society of Australia, vol. 65(2), pages 165-176, June.
    23. van de Klundert, T.C.M.J. & van Schaik, A.B.T.M., 1990. "Liquidity constraints and the Keynesian corridor," Other publications TiSEM bb09d011-093e-44f5-a5f2-6, Tilburg University, School of Economics and Management.

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