Classical Macroeconomics: Some Modern Variations and Distortions (Routledge Studies in the History of Economics, 61)

Macroeconomics is casilv the most unsettled area of modern economics. Conflicting explanations abound over why interest rates or prices on average rise or fall. Dispute continues over whether government tax policies should encourage consumer spending or saving. Similarly, it is unsettled whether government spending should be a principal instrument of economic growth promotion or rather be limited to the minimal role of national defence, the administration of justice, including the protection of private property and enforcement of contracts, and the enactment of laws to facilitate commercial enterprise.The classical economists, especially Adam Smith, David Ricardo, J.-B.Say, and J.S.Mill, provided clarifications as well as answers to the above questions, which Alfred Marshall carried into the twentieth century. However, failing to interpret correctly economic concepts as employed by the classical economists, John Maynard Keynes dismissed the classical explanations and conclusions as being irrelevant to die world in which we live. The trauma of the Great Depression and Keynes's changed definition of economic concepts, aided by the work of Eugcn Bohm-Bawcrk, have made it difficult for modern economists to fully appreciate the classical insights. This book clarifies the classical explanations to help resolve the continuing theoretical and policy disputes. Key chapters include:On the definition of moneyKeynes's misinterpretation of the classical theory of interestThe classical theory of growth and Keynes's paradox of thriftThe mythology of the Keynesian multiplier. Book Cover......Page 1 Title......Page 4 Contents......Page 5 List of figures......Page 12 Preface......Page 13 Acknowledgments......Page 18 Introduction......Page 20 The classical theory of value: a foundation of macroeconomic analysis......Page 26 On the definition of money: classical vs modern......Page 48 The classical theories of interest, the price level, and inflation......Page 76 Keynes's misinterpretation of the classical theory of interest......Page 98 The Austrians, "capital," and the classical theory of interest......Page 115 Wicksell on the classical theories of money, credit, interest, and the price level......Page 133 Fisher, the classics, and modern macroeconomics......Page 152 The classical theory of growth and Keynes's paradox of thrift......Page 163 Full employment: Keynes's mistaken attribution to the classics......Page 177 Hicks, the IS-LM model, and the success of Keynes's distortions of classical macroeconomics......Page 196 The mythology of the Keynesian multiplier......Page 211 Conclusion......Page 230 Notes......Page 239 Bibliography......Page 253 Index......Page 264

john Maynard Keynes Failed To Correctly Interpret Classic Economic Concepts, And Dismissed The Classical Explanations And Conclusions As Being Irrelevant To The World In Which We Live. The Trauma Of The Great Depression And Keynes's Changed Definition Of Economic Concepts, Aided By Eugen Böhm-bawerk, Have Made It Difficult For Modern Economists To Fully Appreciate The Classical Insights.

this Outstanding Book Clarifies The Classical Explanations To Resolve The Continuing Theoretical And Policy Disputes. Key Chapters Include:

• on The Definition Of Money


• keynes's Misinterpretation Of The Classical Theory Of Interest


• the Classical Theory Of Growth And Keynes's Paradox Of Thrift


• the Mythology Of The Keynesian Multiplier

this Unique Book Demonstrates That It Is Keynes's Understanding Of Some Fundamental Classical Economic Concepts Which Is At Fault, And Extends Its Analysis To Other Modern Contributions In Macroeconomics.

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