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Modern macroeconomics is in a stalemate, with seven schools of thought attempting to explain the workings of a monetary economy and to derive policies that promote economic growth with price-level stability. This book pinpoints as the source of this confusion errors made by Keynes in his reading of classical macroeconomics, in particular the classical Quantity Theory and the meaning of saving. It argues that if these misunderstandings are resolved, it will lead to economic policies consistent with promoting the employment and economic growth that Keynes was seeking. The book will be crucial reading for all scholars with an interest in the foundations of Keynes's theories, and anyone seeking to understand current debates regarding macroeconomic policy-making.
James C. W. Ahiakpor is Professor Emeritus, Department of Economics, California State University, East Bay, USA.
List of figures. List of tables. Preface. Acknowledgments.1. Introduction: the sorry, puzzling state of macroeconomics after Keynes's General Theory. 2. A classical alternative to the AS-AD model of the price level. 3. Keynes's mistaken charge of a classical dichotomy regarding the Quantity Theory of money. 4. On interpreting a controversial passage in David Hume's "Of Money": the impediment of Keynes's influence. 5. Milton Friedman's misleading influence from interpreting the Great Depression with Keynes's broadly defined money. 6. The modern free-banking advocacy: a casualty of Keynes's broad definition of money. 7. Saving and capital: Roy Harrod's failure to recognize Keynes's misinterpretations in the classical theory of interest. 8. Saving and the errors of Keynes's critique of the loanable funds theory of interest. 9. The IS-MP model: a worse alternative to the IS-LM model. Bibliography. Index.
