Debates in macroeconomics from the great depression to the long recession: Cycles, crises and policy responses

Praise for Debates in Macroeconomics from the Great Depression to the Long Recession
Preface: Macroeconomics Facing a Ghost—2008 and the Threat of a New Depression
	Economic Crises, the Rise and then Fall of Keynesian Economics
Acknowledgements
Contents
Part I Theory and Policy Around the Great Depression
1 Wicksell’s Novel Macro Thinking: Consequences for Understanding Cycles, Crises and Policy
	1.1 Wicksell on Money, Prices and Interest Rates
	1.2 The Cumulative Process
	1.3 Wicksell on Monetary Policy
	1.4 A First Look: The Implications of Wicksell’s Novel Ideas for Macro
	1.5 Wicksell on Cycles, Crises and Macro
	1.6 Summary
2 The Early Keynes as a Marshallian: Before the Great Depression
	2.1 Introduction
	2.2 Marshall and Cambridge Monetary Tradition
	2.3 Keynes’s Early Monetary Thinking
	2.4 Keynes and Wicksell: Up to the Treatise
	Appendix 1: The Fundamental Equations
3 The Young Hayek: Toward a Monetary Theory of Cycles
	3.1 Hayek’s Early Interest in Monetary Issues
	3.2 Monetary Theory and the Trade Cycle
	3.3 Prices and Production
	3.4 Hayek on Policy Facing the Great Depression
	3.5 Summary
	Appendix 1: Hayek (1923)—An Outline of a Ph.D. Thesis
4 A Distraction: The Heated Hayek–Keynes Exchange About the Treatise
	4.1 Hayek’s and Keynes’s Early Encounters
	4.2 The Heated Treatise Deliberations
	4.3 On the Public Debate Concerning Policy in the Early 1930s
	4.4 Summary: Hayek and Keynes on Crises and Policy in the Early 1930s
	Appendix 1: Hayek’s Retrospective Assessment of Keynes as an Economist
Part II Keynes’s and Hayek’s New Thinking: 1936 to 1946
5 Keynes’s General Theory: The Central Messages
	5.1 The Path from the Treatise to the General Theory
	5.2 The Central Messages: A Departure from Classical and Marshallian Traditions
	5.3 The Departure from Wicksell’s “Natural Rate”
	5.4 The “Concluding Notes” on Social Philosophy
6 Hayek’s Transformation on Knowledge in Economics
	6.1 The Innovative 1937 Paper: “Economics and Knowledge”
	6.2 From “Scientism” to “Complexity and Orders”
	6.3 Complex Phenomena and Order
	6.4 A Later Appraisal
7 Keynes and Hayek After 1936: An Intriguing Silence and Surprising Agreements
	7.1 Capitalism, Cycles and Crises
	7.2 An Intriguing Silence on the General Theory
		7.2.1 Hayek’s Reexamination and Modification of His Theories After the GT
		7.2.2 The Gold Standard Versus Monetary Nationalism
	7.3 Hayek Rethinking Cycles’ Theory 1939
	7.4 The War Consensus: Surprising Agreements
		7.4.1 Agreement: “How to Pay for the War”
		7.4.2 Defending Liberal Capitalism: “The Road to Serfdom” and Keynes’s Supportive Comments
	7.5 Summary
Part III 1950s to 1980s: The Years of Keynesianism and The Counter Revolutions
8 The Ascent of Keynesianism: The IS-LM Hegemony
	8.1 The Conventional Story on the Rise of Keynesian Thought
	8.2 Blaug on the Keynesian Revolution
	8.3 A Dissenting Interpretation: Laidler’s Fabricating the Keynesian Revolution
	8.4 Keynes’s General Theory and the IS-LM Model
9 Opposing Keynesianism: Friedman and the Rise of Monetarism
	9.1 Against the Orthodoxy of the 1950s: Money Matters
	9.2 The Rhetoric of Monetarism: Data and Positivism
	9.3 The Central Messages of the 1960s
	9.4 Rules Not Discretion: The Debate with the Keynesians
	9.5 The Success of Monetarism: “Scientific” and “Ideological” Facets
	9.6 Friedman and Hayek
	9.7 Leijonhufvud on “The Wicksell Connection” and Friedman
	9.8 A Note: Friedman on Free Banking
10 Opposing Keynesianism: Hayek’s 1970s Volte Face—From Opposing to Supporting “Free Banking”
	10.1 Hayek’s Return to Economics
	10.2 Approving “Free Banking:” The “Competition in Issuing” Argument
	10.3 Calling for a “Free Money” Movement
	10.4 Benjamin Klein’s Model and Hayek’s Claims
	10.5 On Macroeconomics and Knowledge: Hayek, Keynes and the Moderns
	Appendix 1: A Note on Hayek’s Position on Free Banking in The Constitution of Liberty
	Appendix 2: A Note on Hayek and Monetarism
11 Opposing Keynesianism: New Classical Macroeconomics from Rational Expectations, Through Real Business Cycles, to DSGE and (the So Called) New Keynesians
	11.1 Introduction
	11.2 Rational Expectations—RE
	11.3 Real Business Cycles Theory—RBC
	11.4 The Road to DSGE and the (So Called) New Keynesians
	11.5 The Opposition of NCM to Keynes and Keynesian Macroeconomics
Part IV Macroeconomics Before the Long Recession: The Return of Micro and Decline of Macro
12 How Did Micro Come to Reign over Macro Again? On Microeconomics, Macroeconomics and Microfoundations for Macro
	12.1 Introduction
	12.2 Micro and Macro Perspectives
	12.3 The Transforming Role of Microfoundations for Macroeconomics
	12.4 NCM, Microfoundations for Macro and the “Representative Agent”
	12.5 Micro Reigns over Macro Again, Leaving Less Room for Macro Policy
13 On Some Dissenting Views: “Post-Keynesians” and Hyman Minsky
	13.1 Introduction
	13.2 Early and Later “Post-Keynesians”
	13.3 Hyman Minsky: Finance and Instability in the Capitalist System
14 Between Simplicity and Complexity: Had 2008 Witnessed a Failure of Economic Simplicity?
	14.1 Introduction
	14.2 Complexity Versus Simplicity in Economics
	14.3 The Dismal State of Macro in 2008: A Failure of Economic Simplicity?
15 Epilogue: The Road of Macroeconomics Away from Keynesian Economics
	15.1 Under the Shadow of the Great Depression: The Rise of Keynesian Macroeconomics
	15.2 Early Oppositions to Keynesian Economics: Friedman’s Monetarism and Hayek’s Austrian Formulations
	15.3 The Domination of New Classical Macroeconomics by 2008: The Crucial Role of “Microfoundations for Macro”
	15.4 A Brief Look at Macroeconomics After 2008: Some Attempts to Modify (But Many “Stayed the Course”)
	15.5 Method in Macroeconomics and Government’s Onus in the Economy
References
Author Index
Subject Index