Cambridge Economics in the Post-Keynesian Era: The Eclipse of Heterodox Traditions

Preface
	A Subaltern Window
	The Rashomon Syndrome
	Cigars, Smoke, Mirrors
	“What If … ?”
	COVID Caveat
Cover
Acknowledgements
Contents
List of Tables
Chapter 1: Cambridge, That Was: The Crucible of Heterodox Economics
	1.1 The Narrative
	1.2 Evolutions and Revolutions
		1.2.1 The Great Banyan of Heterodox Traditions
		1.2.2 Cohorts
		1.2.3 The Cambridge Habitat
		1.2.4 Which Cambridge?
	1.3 Regime Change
		1.3.1 The World of Cambridge: Stories Within
		1.3.2 Worlds Beyond Cambridge: Neoliberalism at the Gates
	1.4 The Dialectic of Competing Paradigms
		1.4.1 Laissez-Faire: “Receding at last into the distance”
		1.4.2 The Force of Ideas
		1.4.3 Opposition Brewing
		1.4.4 Evolutions and Hegemonic Incorporation
		1.4.5 Ideological: Not the Techniques but the Purposes of Economics
		1.4.6 Sociological: Mathematical Whiz-Kids and Ageing Dinosaurs
		1.4.7 Beyond Kuhnian Reductionism
		1.4.8 Mankiw’s Pendulum
		1.4.9 Solow’s À La Carte Approach
		1.4.10 Silos and Trenches
		1.4.11 Joan Versus Hahn—History Versus Equilibrium
	1.5 Semantics and Pedantics
	References
Chapter 2: The Warring Tribes
	2.1 A Sanctuary of Sages
		2.1.1 Class to Community: The Cement of War
		2.1.2 Community to Conflict: Cement to Sand
		2.1.3 A Pride of Savage Prima Donnas
	2.2 Faculty Wars
		2.2.1 Paradise Lost
		2.2.2 Fault Lines Within
			Wynne Godley: No Legacy No Synthesis, No Textbooks—The Samuelson Factor
			Shifting Student Preferences?
			“Irrelevance” and Irreverence: Joan and K-Theory
			Inbred Insularity, Complacency
			Simultaneities in the Demographic Lifecycle
			Lack of Internal Group Coherence
			The Heterodox Camp: No Chairs—Sorry, Standing Room Only
			A Break in Intergenerational Transmission, in the Reproduction of Traditions
	2.3 Godfathers, Uncles and Nephews: The Gathering Foe
		2.3.1 The Trojan Horse: By the Pricking of My Thumbs
		2.3.2 Forming the Academy
			Meanwhile, at the Orthodox Party—A Merry Game of Musical Chairs
		2.3.3 The Chess Master
	2.4 The Campaign: How the War Was Lost and Won
		2.4.1 The Orthodox Gambit: Capture the External Commanding Heights
		2.4.2 Carrots and Commanders
		2.4.3 Modus Operandi: Masters, Mandarins and Interlocking Committees
	References
Chapter 3: Worlds Beyond Cambridge: The Global Web of the ‘Neoliberal Thought Collective’
	3.1 Conjunctures
		3.1.1 1930s, The Prelude
			LSE Versus Cambridge
			Émigré Economists: The Benefactions of Lenin and Hitler
		3.1.2 1940s, The Cascade
		3.1.3 Keynesianism: Divergent Receptions
			Post-war Affinity in the UK
			Post-New Deal Hostility in the USA
	3.2 Spreading the Word: Messiahs, Messages, Methods
		3.2.1 Ideas and Ideologies: Manufacturers and Retailers
		3.2.2 USA: Early Ideological Entrepreneurs of Libertarianism
			Harold Luhnow: The Volker Fund and its Dollars
			Foundation for Economic Education (FEE) and its Facilitators
		3.2.3 Europe: Friedrich Hayek and the Mont Pelerin Society
			Antecedents
				Paris
				Vienna
				Geneva
			Pilgrims Atop a Mountain, Mont Pelerin, Switzerland, April 1947
			Financial Sponsors
			The First Meeting of Minds
			Sarcastic Schumpeter, Sceptical Solow, Scathing Samuelson
		3.2.4 UK: Antony Fisher, Global Venture Capitalist of Think Tanks
	3.3 Branding the Message: The ‘Nobel’ Prize
		3.3.1 The Stockholm Connection: Ideological Entrepreneurs
		3.3.2 Some Early Awards: Setting the Direction
			Jan Tinbergen—Ragnar Frisch 1969
			Samuelson 1970
			Gunnar Myrdal—Friedrich von Hayek 1974
			Milton Friedman 1976
		3.3.3 Mont Pelerin Society and the ‘Nobel’—A Golden Embrace
		3.3.4 Cambridge Heterodoxy?
		3.3.5 ‘An Ideological Coup’
	3.4 Reaching Politics: Weaponising the Message
		3.4.1 Santiago de Chile: Pinochet the Pioneer
			Chicago and its Cowboys
			Thatcher: Romancing Pinochet’s Chile
		3.4.2 The White House: Reagan, a Disciple
		3.4.3 10 Downing Street: Thatcher, a Devotee
			More than its Weight in Gold—The Market Price of Symbolic Capital
		3.4.4 Pulling Together
	3.5 Besieging Cambridge: The Chicago–MIT–LSE Trinity
		3.5.1 A Cross-Atlantic Triangle
		3.5.2 Diversity of Practice
		3.5.3 Unity of Purpose
	References
Chapter 4: Camp Skirmishes Over Interstitial Spaces: Journals, Seminars, Textbooks
	4.1 The Battle of Teruel—The Day before
	4.2 Journals
		4.2.1 EJ Leaves ‘Home’—The Loss of a Flagship
		4.2.2 CJE Arrives—A Forum of One’s Own
		4.2.3 Cambridge Economic Policy Review: One Crowded Hour of Glorious Life
	4.3 Seminars
		4.3.1 Cambridge Economic Club—A Marshallian Precursor: 1884–1890, 1896–?
		4.3.2 Political Economy Club: From Keynes to Robertson to Kahn—Dazzling to Dour
		4.3.3 The Marshall Society: A Socialisation into Economics and Its Purposes
		4.3.4 Piero Sraffa’s Research Students Seminar: A Precocious Nursery
		4.3.5 In Retrospect, Austin Robinson on the Cambridge Circus: The Engine Room of The General Theory
		4.3.6 Cambridge–LSE Joint Seminar: Jousting Juniors
		4.3.7 Kahn’s ‘Secret’ Seminar at King’s: Fires in the Kitchen
		4.3.8 The Richard Stone Common Room: Typhoo and Typhoons
		4.3.9 Ajit Singh’s Political Economy Seminar at Queens’: Young Turks
		4.3.10 Arestis and Kitson Political Economy Seminar at St. Catherine’s College
		4.3.11 Hahn’s Churchill Seminar: Only Maths and Neoclassicals, Others Beware
		4.3.12 Cambridge Growth Project Seminar at DAE
		4.3.13 Hahn’s ‘Quaker’ Risk Seminar: The Rising Tide
		4.3.14 Matthews’s CLARE Group: The Master’s Lodge of Moderate Practitioners
		4.3.15 Lawson—Realism and Social Ontology: Ways of Seeing and Framing
	4.4 Textbooks
		4.4.1 Distant Thunder: Keynes and McCarthy, Tarshis and Samuelson
		4.4.2 Lawrence Klein and the Paradox of The Keynesian Revolution
			Puzzle
			Ph.D.—At Samuelson’s Feet
			Cowles Commission—The New Dealers
			The Keynesian Revolution: The Extra Chapter—Klein, Then a Closet Marxist?
			Beyond Keynes
			UMich and McCarthyism
			Policy to Forecasting
			Resolution
		4.4.3 ‘Death of a Revolutionary Textbook’: Robinson and Eatwell
		4.4.4 An ‘Applied Economics’ Textbook That Wasn’t: Joan and Young Friends
	4.5 The Battle of Teruel—The Day After
	Appendix 4.1: First off the Blocks: Mabel Timlin’s Keynesian Economics, 1942
	References
Chapter 5: The DAE Trilogy
	5.1 Origins and Evolution
		5.1.1 Origins
		5.1.2 Evolution: Substance and Styles
		5.1.3 Foundations of Stone
		5.1.4 Reddaway’s Method: Eclectic Development
		5.1.5 Godley: Turbulent Times
	5.2 End of the Golden Age: The Decade of Discontent
	5.3 The Trilogy: Discrete Episodes or a Serial Campaign?
	Appendix 5.1: DAE—Finding a Good Home
	References
Chapter 6: Cambridge Economic Policy Group: Beheading a Turbulent Priest
	6.1 Charged Conjuncture
		6.1.1 Imbroglios of 1974: Old Versus New Cambridge Versus the Establishment
		6.1.2 The Enigma of Kahn
		6.1.3 Kaldor: On Radical Policy Implications of New Cambridge, 1976
		6.1.4 Cambridge Squabbles: Spillover into Whitehall?
		6.1.5 Triggering Crisis: The Pivot of the OPEC Price Hikes
		6.1.6 1979: Enter Margaret Thatcher, Right-Wing, Upfront
		6.1.7 The Case of the Odd Consensus: The Letter by 364 Economists, 1981
		6.1.8 Thatcher in the Garage of the Federal Reserve
		6.1.9 1981: Brixton Riots, Toxteth Fires: “A Concentration of Hopelessness”
		6.1.10 The CEPG: A Thorn in the Thatcher Hide
		6.1.11 The Bogey of Import Controls and the Spectre of Bennism
	6.2 SSRC and CEPG: Dispensing Instant Injustice
		6.2.1 Posner’s Parlour
		6.2.2 Posner’s Process
	6.3 Epilogue
		6.3.1 Vengeance
		6.3.2 The Team Scattered
		6.3.3 The Model Reincarnated
		6.3.4 The Rehabilitation of Wynne
		6.3.5 Wynne Godley: ‘My Credo’ …
		6.3.6 The Pacification of the CEPG
	Appendix 6.1: Old Cambridge, New Cambridge, 1974: and All the King’s Men
		1. Letter WG to RFK 23 May 1974. JVR/vii/228/3/3
		2. Letter NK to RFK 20 May 1974. JVR/vii/228/3/14-16
		3. Letter from RFK and MP to NK 24 May 1974. JVR/vii/228/3/17-20
		4. Letter from RFK and MP to NK 28 May 1974. JVR/vii/228/3/24
		5. Letter from FC to RFK 29 May 1974. JVR/7/228/3/25
		6. Reply from RFK to FC 6 June 1974. JVR/7/228/3/24
		7. In the interim, NK replied to RFK and MP. JVR/7/228/3/26
		8. Letter from NK to RFK. RFK/12/2/132/3
	References
Chapter 7: ‘Unintended’ Collateral Damage? The Cambridge Economic Policy Group and the Joseph-Rothschild-Posner SSRC Enquiry, 1982
	7.1 Joseph—Rothschild—Posner—Godley
	7.2 The Posner-the-Saviour Narrative
	7.3 Setting Up the Enquiry
	7.4 Who Proposed Rothschild?
	7.5 Rothschild Report Writing Process
	7.6 The Judgement of Rothschild
	7.7 Between Draft and Release and Response: Handshakes and Cigars
	7.8 Did Posner Get Away with Just a Change of Name?
	7.9 CEPG—Collateral Damage? Or, Traded Down the River?
	7.10 The Rothschild Report: Gleanings on Macroeconomic Modelling
	7.11 Lord Kaldor—Off the Record, Off the Cuff, Off the Mark?
	7.12 Lord Harris’ Vitriol
	7.13 Catholicity and Independence
	7.14 Rothschild’s Last Word
	7.15 Joseph’s Last Laugh
	References
Chapter 8: Cambridge Growth Project: Running the Gauntlet
	8.1 Background and Conjuncture
		8.1.1 The Decision
	8.2 Substantive Issues
		8.2.1 No Innovation?
		8.2.2 Catholicity, Turnover and the Value of Disaggregation
		8.2.3 Use of Input-Output Tables
		8.2.4 CGP Presence in Policy Debates
		8.2.5 Insularity
		8.2.6 On Exploiting the Cheap Labour of Graduate Students
	8.3 Issues of Procedural Probity
		8.3.1 Shifting Goalposts Across Evaluations
		8.3.2 Unequal Application of Criterion of Commercial Funding
		8.3.3 Public Good or Private Resource?
		8.3.4 ESRC Ignored CGP Model Performance: Why?
		8.3.5 Compromised ‘Independent’ Evidence
	8.4 Other Concerns
		8.4.1 ‘Reds’?
		8.4.2 Crowding Out Competitors?
		8.4.3 Deadweight Loss of Built-up Intellectual Capital
		8.4.4 Gratuitously Offensive: Up Close and Out of Order
		8.4.5 The Consortium: ‘Revived Talk of Conspiracy Theory’
		8.4.6 In Defence, a Lone Voice, Overruled
	8.5 Epilogue: CGP—Life After Death?
	Appendix 8.1: CGP Staff Members, Timeline 1960–1987
	Appendix 8.2: Publications of CGP Staff
	References
Chapter 9: The DAE Review 1984–1987: A Four-Year Inquisition
	9.1 The Campaign of Attrition
		9.1.1 Occluded Origins
		9.1.2 Two Stages, Two Committees
	9.2 The Orthodox Gambit
		9.2.1 The Agenda Revealed
		9.2.2 The Game Plan: Four Options
			Closure
			Separation
			Absorption
			Capture
		9.2.3 External Critiques: Collusion as Consultation?
	9.3 The Heterodox Defence
		9.3.1 Solidarity, Testimonies, Rebuttals
		9.3.2 Chinks in the DAE Armour?
	9.4 On the Rack: Bleeding the DAE
		9.4.1 The Secretary General, The Prince and the Chess Master
		9.4.2 The Capture
		9.4.3 How it Transpired, Perhaps Not Just by Chance
		9.4.4 Checkmate: A Constitutional Coup
	9.5 Epilogue
	Appendix 9.1: DAE Review Committees: Composition and Terms of Reference
		First Advisory Committee. Constituted: Easter Term 1984; Reported: May 1985
		Second Advisory Committee: Constituted: Easter Term 1985; Reported April 1987
	Appendix 9.2: Labour Studies Group: Dispersed, Not Defeated
	References
Chapter 10: Sociology: The Departure of ‘Stray Colleagues in a Vaguely Cognate Discipline’
	10.1 Early Years: Hostility, Neglect, Subordination
	10.2 Sociology: Growing Up Amongst Economists
	10.3 Hostile Public Spaces: SSRC, Rothschild-1982 and Sociology
		10.3.1 Entrenched Resistance to the Emergence of SSRC
		10.3.2 In the Court of Public Opinion: Open Season on Sociology
		10.3.3 The Joseph–Rothschild Assault
	10.4 Back in Cambridge, 1984–1986: To Remain Or to Exit, That Was the Question
		10.4.1 Sociology in the DAE Review: Crossfire and Crossroads
		10.4.2 Cometh the Hour, Cometh … Tony Giddens
	10.5 Archival Insights: Harboured Preferences Revealed
		10.5.1 Do Please Stay, Pleaded the Heterodox
		10.5.2 Clear Out Now, Growled the Orthodox
		10.5.3 Do What Is Best for You, Whispered the Faculty Board
		10.5.4 Time to Choose: The Sociologists Speak
	10.6 Leaving Home, a Space of Its Own
	References
Chapter 11: Development on the Periphery: Exit and Exile
	11.1 Cambridge Development Studies: The Heterodox Inheritance
		11.1.1 The Capitalist Economy and Its Cambridge Critics
		11.1.2 Bridges to Development
	11.2 Evolution of the Teaching Project: Multiple Identities
		11.2.1 Timelines
		11.2.2 In University Space: The Professionalisation of ‘Development Studies’
			The Early Years: Fine-tuning Imperial Instruction, 1926–1969
			Turbulence and Transformation: Revising the Mandate, 1969–1982
		11.2.3 In Faculty Space: The Disciplining of ‘Development Economics’
		11.2.4 Against the Mainstream: Subaltern Perspectives
	11.3 Development Research: Ebbs and Flows
		11.3.1 Cambridge–India Highway: Cambridge in India
		11.3.2 Cambridge–India Highway: India in Cambridge
		11.3.3 Not Just India
		11.3.4 Bi-modal Distribution of Development Interest
	11.4 1996: Divorce and Eviction
	11.5 A Credible Counterfactual
	Appendix 11.1: Arguments in Support of Continuation of Development Studies Course in Cambridge
	References
Chapter 12: From Riches to Rags? Economic History Becomes History at the Faculty of Economics
	12.1 Introduction: Economics and Economic History
	12.2 The Pre-War Period: 1939, Marshallian
		12.2.1 At the Faculty of History
			Cunningham to Clapham via Marshall
			Clapham to Postan via Power
		12.2.2 At the Faculty of Economics and Politics
			Maurice Dobb, 1900–1976
	12.3 Post-War Period-I, 1945–1980s: Post-Keynesian
		12.3.1 At the Faculty of Economics and Politics
			On the DAE Side
				Stone, Historical Statistics and National Accounts
				Phyllis Deane
			On the Faculty Side27
				John Hrothgar Habakkuk, 1915–2002
				Nick Von Tunzelmann, 1943–2019
		12.3.2 At the Faculty of History
			‘Munia’ Postan
				Vision and Approach
				Hostility Towards Cambridge Economists
			The Turn to Business Studies-I, David Joslin 1965–1970
			The Turn to Business Studies-II, Donald Coleman 1971–1981
	12.4 Post-War Period-II, 1980s: Unravelling and Divergence
		12.4.1 At the Faculty of History
			The Turn to Business Studies-III, Barry Supple 1981–1993
			Modern Times: Martin Daunton 1997–2015
		12.4.2 At the Faculty of Economics: Turbulence, Transitions and Affinities
			Cluster 1: Humphries—Horrell
				Jane Humphries
				Sara Horrell
			Cluster 2: Kitson—Solomou—Weale
				Solomos Solomou
				Martin Weale
				Michael Kitson
				Solomou, Weale, Kitson
			Cluster 3: Ogilvie72—Edwards
			Cluster 4: Toke Aidt
	12.5 c.2020, Here, to Where?
		12.5.1 Economic History at the Faculty of Economics: Full Stop?
		12.5.2 At the Faculty of History: New Turnings
	Appendix 12.1: Economic History and Accounting at the DAE
	Appendix 12.2: Locating Phyllis Deane in National Accounting and Feminist Discourse: A Supplementary Note98
	References
Chapter 13: Research Assessment Exercises: Exorcising Heterodox Apostasy from ‘Economics’
	13.1 The Agenda
	13.2 The Teaching Body: Unification, Hierarchy, Control
	13.3 1986: Swinnerton-Dyer and the Genesis of the RAE
	13.4 1986–1989: Frank Hahn and the Orthodox Capture of the RES
	13.5 Through the RES: Controlling Panel Selection
	13.6 Outcomes
	13.7 Consequences and Critiques
		13.7.1 Gaming
		13.7.2 Competition and Conflict: Managerialism
		13.7.3 Individual Stress
		13.7.4 Medium Over Message: Diamonds for Ever
		13.7.5 Unethical Research Practices and Shaky Quality Proxies
		13.7.6 The Atrophy of Collective Research Traditions and Environments
		13.7.7 The Loss of Intrinsic Values
		13.7.8 Undervaluation of Undergraduate Teaching
	13.8 The Suppression of Heterodox Economics and Economists
	13.9 Follow Big Brother: Elimination of Heterodoxy in USA
	13.10 1662, Deja Vu
	References
Chapter 14: Reincarnations
	14.1 In a Nutshell, à la Joan
	14.2 Purges and Purification
	14.3 Triumphalism
	14.4 A Royal Mess: The Queen’s Question
	14.5 Students Speak Up
		14.5.1 In Cambridge
		14.5.2 Elsewhere
	14.6 Faculty Performance: A Summary Report Card
		14.6.1 Global Ranks
		14.6.2 RAEs, REFs
	14.7 Exiles and Reincarnations
		14.7.1 The DAE Flagships: CGP and CEPG
		14.7.2 DAE Industrial Economics: Alan Hughes and the CBR
		14.7.3 Judge Business School
		14.7.4 The Economic Historians
		14.7.5 Sociology: That ‘Vaguely Cognate Discipline’
		14.7.6 Development
	14.8 Reluctant Regrets
		14.8.1 Robin Matthews
		14.8.2 Frank Hahn
		14.8.3 David Newbery
		14.8.4 Tony Atkinson
		14.8.5 Francois Bourguignon
		14.8.6 Alan Blinder
		14.8.7 Peter Diamond
		14.8.8 Partha Dasgupta via Robert Neild
		14.8.9 Another Snowflake Moment?
	14.9 Donors: Leveraging a Reboot?
	14.10 The Great Banyan
	Appendix 14.1: Letter of Protest by Graduate Students, 2001
	References
References
Name Index
Subject Index