Monday, June 5, 2017

A Belated Reply to Janet Yellen's 1980 Critique of Post-Keynesian Economics

Brad Delong is in the excellent habit of reposting some of his older pieces, including a ten-year old post entitled “Keynesian Economicses and the Economicses of Keynes.”  Although Brad doesn’t mention it in his 2007 post, Janet Yellen wrote a harsh critique of Post-Keynesian economics in 1980, which was entitled “"On Keynesian Economics and the Economics of the Post-Keynesians".  I read Yellen’s 1980 paper recently and decided to write a reply. Here’s the abstract:

"Thirty years before Janet Yellen became Chair of the U.S. Federal Reserve, she wrote a blistering polemic entitled 'On Keynesian Economics and the Economics of the Post-Keynesians' (1980).  Ms Yellen criticized the Post-Keynesian theory of output and income distribution, vigorously defended the neoclassical synthesis, and extolled the virtues of the 'standard Keynesian IS-LM model.'  In this belated reply, I respond to Yellen’s criticisms of Post-Keynesian economics, expose some flaws in her own distinctive version of the IS-LM model, and outline a few implications of Ms Yellen’s ironic epiphany, 'A Minsky Meltdown: Lessons for Central Bankers” (2009)' for contemporary debates in macroeconomics."

1 comment:

  1. In my paper, I had to refer repeatedly to the words of professors from Berkeley, whose contributions to the economy is simply grandiose.
    In a sense, the thoughts of Brad Delong at the Center for Equitable Growth speech have become very close to me, especially after reading steel relevant "The Survival of Noise Traders in Financial Markets”
    so I tried to unite these and other acquired knowledge in one of my works on macroeconomics which I carried out together with experts representing In fact, the definition of the rate of economic growth became the basis of my work, which has quite positive feedback from readers and teachers.