No realism please. We’re Chicago economists!

20 September, 2015 at 16:52 | Posted in Economics | Comments Off on No realism please. We’re Chicago economists!

neoliberalism-meme-keanuSamuelson’s reconciliation of the micro-economic ideal type with involuntary unemployment was repudiated, along with Keynesian prescriptions, in favor of a view that there could be no involuntary unemployment , hence that government action was unnecessary. The result was a doctrinaire derivation of the laissez-faire conclusions that had been overturned by the formalist revolution; economics was now cleansed of Keynesian impurities that had been introduced in the interest of realism.

Peter Boettke

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