Maynard's Revenge : The Collapse of Free Market Macroeconomics

This book’s title gives it to you straight: it’s about how the collapse of 2008 brought Keynes back with a bullet. Taylor’s principal aims are, first, to show how ineffective and inappropriate are the dominant approaches to macroeconomics of the past 30‐40 years (which have been succinctly summed up as “pre-Keynesian theory after Keynes” ); and, secondly, to show how Keynes and post-Keynesian writers, whose ideas in recent years have been greatly downplayed and even ridiculed by the bulk of the profession, contain the proper bases on which to erect both understanding and effective policy proposals. It Is Now Widely Agreed That Mainstream Macroeconomics Is Irrelevant And That There Is Need For A More Useful And Realistic Economic Analysis That Can Provide A Better Understanding Of The Ongoing Global Financial And Economic Crisis. Lance Taylor's Book Exposes The Unrealistic Assumptions Of The Rational Expectations And Real Business Cycle Approaches And Of Mainstream Finance Theory. It Argues That In Separating Monetary And Financial Behavior From Real Behavior, They Do Not Address The Ways That Consumption, Accumulation, And The Government Play In The Workings Of The Economy. Taylor Argues That The Ideas Of J.m. Keynes And Others Provide A More Useful Framework Both For Understanding The Crisis And For Dealing With It Effectively. Keynes's Basic Points Were Fundamental Uncertainty And The Absence Of Say's Law. He Set Up Machinery To Analyze The Macro Economy Under Such Circumstances. Including The Principle Of Effective Demand. Liquidity Preference, Different Rules For Determining Commodity And Asset Prices, Distinct Behavioral Patterns Of Different Collective Actors, And The Importance Of Thinking In Terms Of Complete Macro Accounting Schemes. Economists Working In This Tradition Also Worked Out Growth And Cycle Models. Employing These Ideas Throughout Maynard's Revenge. Taylor Provides An Analytical Narrative About The Causes Of The Crisis, And Suggestions For Dealing With It. --book Jacket. Macroeconomics -- Macroeconomic Thought During The Long Nineteenth Century -- Gold Standard, Reparations, Mania, Crash, And Depression -- Maynard Ascendant -- Keynesian Growth, Cycles, And Crisis -- The Counterrevolution -- Finance -- The International Dimension -- Keynesianism And The Crisis. Lance Taylor. Includes Bibliographical References And Index. It is now widely agreed that mainstream macroeconomics is irrelevant and that there is need for a more useful and realistic economic analysis that can provide a better understanding of the ongoing global financial and economic crisis. Lance Taylor’s book exposes the unrealistic assumptions of the rational expectations and real business cycle approaches and of mainstream finance theory. It argues that in separating monetary and financial behavior from real behavior, they do not address the ways that consumption, accumulation, and the government play in the workings of the economy. Taylor argues that the ideas of J. M. Keynes and others provide a more useful framework both for understanding the crisis and for dealing with it effectively. Keynes’s basic points were fundamental uncertainty and the absence of Say’s Law. He set up machinery to analyze the macro economy under such circumstances, including the principle of effective demand, liquidity preference, different rules for determining commodity and asset prices, distinct behavioral patterns of different collective actors, and the importance of thinking in terms of complete macro accounting schemes. Economists working in this tradition also worked out growth and cycle models. Employing these ideas throughout Maynard’s Revenge, Taylor provides an analytical narrative about the causes of the crisis, and suggestions for dealing with it. It is now widely agreed that mainstream macroeconomics is irrelevant and that there is need for a more useful and realistic economic analysis that can provide a better understanding of the ongoing global financial and economic crisis. Lance Taylor s book exposes the unrealistic assumptions of the rational expectations and real business cycle approaches and of mainstream finance theory. It argues that in separating monetary and financial behavior from real behavior, they do not address the ways that consumption, accumulation, and the government play in the workings of the economy. Taylor argues that the ideas of J. M. Keynes and others provide a more useful framework both for understanding the crisis and for dealing with it effectively. Keyness basic points were fundamental uncertainty and the absence of Says Law. He set up machinery to analyze the macro economy under such circumstances, including the principle of effective demand, liquidity preference, different rules for determining commodity and asset prices, distinct behavioral patterns of different collective actors, and the importance of thinking in terms of complete macro accounting schemes. Economists working in this tradition also worked out growth and cycle models. Employing these ideas throughout Maynards Revenge , Taylor provides an analytical narrative about the causes of the crisis, and suggestions for dealing with it.