My favourite book on Keynes

24 July, 2012 at 22:10 | Posted in Economics | 3 Comments

Keynes’s economic theory is intimately connected with the epistemological and methodological view he presented already in his Treatise on Probability. To Keynes, economic theory is always unsatisfactory if it is based on the scientist distancing himself from a reality characterized by our knowledge of the future being fluctuating,vague and uncertain.  The main difference between Keynes and neoclassical macroeconomics is – on the deepest level – centered around this point.

In a world in equilibrium there is no difference between now and then. In such a world there is no need for Keynes. But – it is also a fact that the cradle of equlibrium analysis silences all really interesting economic questions.

About these ads