Keynesian economics is the economics of nominal rigidities basically, nominal rigidities everywhere. Fully anticipated money does affect output. Everybody can see that! So, it's right. The fact that it's not as theoretically tidy as Lucas's 1972 Journal of Economic Theory paper is not a reason to throw it away. That's become a minority view in this profession, unfortunately. It wouldn't have been in the '60s.
Alan BlinderRelated topics
affect economics everybody fact journal minority money nominal output paper profession reason right see theory throw tidy view keynesian 60sRelated quotes
Consider John Kenneth Galbraith or Lester Thurow, both leading economists in the view of the general public, both with all the formal qualifications, both totally ignored by the academic mainstream. Or consider Robert Mundell, who is still revered for his contributions to international monetary theory, yet whose later incarnation as the father of supply-side economics has similarly been ignored.
Paul Krugman
This branch of economics has suffered from several intellectual mistakes. The major mistake has been the presumption that standard economic theory is inadequate for understanding low income countries and that a separate economic theory is needed. Models developed for this purpose were widely acclaimed until it became evident that they were at best intellectual curiosities.
Theodore Schultz
There is a reason for the affected profession of "anarchist sympathies" among Tories and grandees, and of "libertarian principles" by Hobbesian yahoos of the right. Among the former, one sees the upholding of the view that a gentleman's business and property are his own, and none of the government's. Among the latter, a distaste for democracy, for taxation, and for the need to consult others about the planet.
Christopher Hitchens
The beginning of the twentieth century witnessed the breakdown of the mechanistic theory even within physics, the science where it was the most successful... Relativity took over in field physics, and the science of quantum theory in microphysics... In view of parallel developments in physics, chemistry, biology, sociology, and economics, many branches of the contemporary sciences became... ‘sciences of organized complexity' - that is, systems sciences.
Ervin László
Our vulnerability [ to ressentiment], is unavoidable (and probably incurable) in a kind of society in which relative equality of political and other rights and formally acknowledged social equality go hand in hand with enormous differences in genuine power, possessions and education; a society in which everyone "has the right” to consider himself equal to everybody else, while in fact being unequal to them.
Zygmunt Bauman
