The Text Book Black Magic, or, How to Make the Keynes Theory Disappear

Grieve, Roy H (2009) The Text Book Black Magic, or, How to Make the Keynes Theory Disappear. Discussion paper. University of Strathclyde, Glasgow.

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Abstract

This paper looks into the question of how it can come about that, not uncommonly, contemporary macro textbooks start their exposition in Keynesian fashion, but end up presenting an essentially classical account. Using a typical textbook for illustration, our diagnosis is that when the AD/AS model is introduced into the discussion, then things go wrong. The AS analysis rehabilitates a pre-Keynesian conception of the working of the labour market, while uncritical and ill-informed use of the AD function effectively ‘tames’ aggregate demand by making it manipulable in such a way as to accord with conditions of labour supply. Not surprisingly, Keynes’s vision of the functioning of the macro system gets lost along the way.

  • Item type:Monograph(Discussion paper)
    ID code:67803
    Dates:
    Date
    Event
    24 April 2009
    Published
    Notes:Published as a paper within the Discussion Papers in Economics, No. 09-11 (2009)
    Subjects:Social Sciences > Economic Theory
    Department:Strathclyde Business School > Economics
    Depositing user: Pure Administrator
    Date deposited:14 May 2019 10:58
    Last modified:11 Nov 2024 16:04
    Related URLs:
    URI:https://strathprints.strath.ac.uk/id/eprint/67803
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