Get The Eclipse of Keynesianism: The Political Economy of the PDF

By Robert Leeson (auth.)

ISBN-10: 0333985656

ISBN-13: 9780333985656

ISBN-10: 1349406422

ISBN-13: 9781349406425

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Extra resources for The Eclipse of Keynesianism: The Political Economy of the Chicago Counter-Revolution

Example text

Marshall's ambiguities, it was claimed, had `paralysed the best brains in the Anglo Saxon branch of our profession for three decades' (Samuelson, 1967a: 109). Lucas and Sargent (1978: 50) noted that the `Keynesian revolution was, in the form in which it succeeded in the United States, a revolution in method' [emphasis in text]. Friedman (1953 [1944]: 277±300) led the `Methodological Criticism' of Oscar Lange's 1944 Cowles Monograph, Price Flexibility and Employment. An economist, he argued, who is concerned about economic reality `is not likely to stay within the bounds of a method of analysis that denies him the knowledge he seeks.

Houthakker's article was `the first full frontal statistical assault on my work' (correspondence from Friedman, 18 April 1995). Friedman, and a growing body of associates and students, were venturing `into almost virgin territory' which they expected would `provoke controversy. . What the calculations of our critics do is to establish a presumption that further research along similar lines may be more rewarding than we thought was likely' (Friedman and Meiselman, 1965: 753, 784). What 32 The Eclipse of Keynesianism followed was the contest between the radio stations, FM versus AM (Ando and Modigliano).

In particular, it is inapplicable to the problems of the Business Cycle' (1939: 561). ' On a visit to the United States, he cautioned younger economists such as Gilbert, Humphrey and Salant against neglecting important theoretical considerations `in the interests of simplifying their statistical task' ( JMK, XIV [1936]: 2; [1938]: 287; XXIII [1941]: 192). Prophetically, as Friedman (1991: 36) pointed out, Keynes (1939: 568, 559) predicted that econometrics had acquired a momentum of its own that would tend to make its practitioners resistant to criticism.

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The Eclipse of Keynesianism: The Political Economy of the Chicago Counter-Revolution by Robert Leeson (auth.)


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