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After
John Maynard Keynes
revolutionized economic thought in 1936, there began a keen
struggle in the economics profession to digest and refine Keynes'
new system. The heart of this debate over Keynes' radical ideas
has been whether they could or should be reconciled with the
older, neoclassical
economic theory.
The
two main branches of thinkers in the Keynesian tradition are
the Post Keynesians and the Neoclassical Synthesists. Post Keynesians
believe that Keynesian ideas have overthrown the neoclassical
belief in efficient, free
markets. Neoclassical Synthesists accept Keynesian
arguments for short-term economic consequences, but they
believe that free markets achieve the best long-term
results. Two famous economists discussed in this audiotape presentation
are Joan Robinson and Paul Samuelson.
Central
to this debate are questions about how long the market can or
should take to correct undesirable circumstances; whether the
free market is a collection of individuals, or a competitive
arena for powerful economic groups that overwhelm individuals;
and what is (or should be) the influence of money on production
and exchange.
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Alfred Marshall & Neoclassicism