Macroeconomic Analysis in the Classical Tradition explains how the influence of Keynes’s macroeconomics, including his changed definitions of some key macroeconomic concepts, has impeded many analysts’ ability to readily resolve disputes in modern macroeconomics.
Expanding on his earlier work—Macroeconomics without the Errors of Keynes (2019)—the author delves into more aspects of macroeconomic theory and argues for a revision of Keynes’s contribution to the field. Attention is given to theories and concepts such as Say’s Law, the quantity theory of money, the liquidity trap, the permanent income hypothesis, 100% money, and the Phillips curve analysis. The chapters work to build a careful critique of Keynes’s economics and make the case that the classical macroeconomics of Smith, Say, Ricardo, Mill, and others could help resolve present-day policy disagreements and redefine macroeconomic priorities.
This book provides essential reading for advanced students and scholars with an interest in the foundations of Keynes’s theories and current debates within macroeconomic policy.
Table of Contents
1. Introduction: The Pervasive Impediment of Keynes’s Influence in Modern Macroeconomic Analysis
2. Interpreting Say’s Law of Markets or Outlets Correctly: The Impediments of Keynes’s Influence
3. Could Keynes have made a Legitimate Case against John Stuart Mill’s Statement of the Law of Markets? An Illustration of Keynes’s Abiding Influence
4. Saving and the Relevant Ricardian Equivalence Theorem
5. Milton Friedman’s Permanent Income Hypothesis: A Distraction from Keynes’s Misrepresentation of Saving as Non-spending
6. The Classical Heritage of Monetary Theory and Policy at Chicago and Harvard before the Keynesian Conquest
7. 100% Money: A Harmful Proposal Appropriately Ignored
8. Keynes’s Liquidity Trap is Impossible: Classical Monetary Analysis Helps to Explain
9. The Quantity Theory of Money, the Forced-Saving Doctrine, and the Phillips Curve Analysis
10. The Future of Keynesian Economics: Struggling to Sustain a Dimming Light
11. Conclusion: Some Policy Implications of Ridding Macroeconomics of Keynes’s Influence
James C. W. Ahiakpor is Emeritus Professor of Economics at California State University East Bay, Hayward, USA.