Keynes and the Neoclassical Synthesis: Einsteinian versus Newtonian Macroeconomics (Routledge Studies in the History of Economics)

You looking to find the "Keynes and the Neoclassical Synthesis: Einsteinian versus Newtonian Macroeconomics (Routledge Studies in the History of Economics)" Good news! You can purchase Keynes and the Neoclassical Synthesis: Einsteinian versus Newtonian Macroeconomics (Routledge Studies in the History of Economics) with secure price and compare to view update price on this product. And deals on this product is available only for limited time.

   

Product Description

This remarkable volume provides a critical assessment of Neoclassical Synthesis, long regarded as the standard interpretation of Keynes. Taking issue with this orthodoxy, the author offers a unique interpretation of the foundation of modern macroeconomics, arguing that the subject derives from the conflict between two research programmes inspired by different paradigms in physics: the Newtonian programme of Hicks and the Einsteinian approach of Keynes.
Original and provocative in its reflections, Keynes and the Neoclassical Synthesis not only offers a fresh interpretation of Keynes but makes an important contribution to debates within post-Keynesian economics. It will thus be of interest to all those interested in Keynes' place in the history of economic thought and macroeconomic methodology.

Keynes and the Neoclassical Synthesis: Einsteinian versus Newtonian Macroeconomics (Routledge Studies in the History of Economics) Review

Togati(T)presents a correct overview and literary assessment of Keynes's General Theory of Employment(GT;1936)that demonstrates the close similarities between Keynes's and Einstein's approaches in the construction of their respective general theories.T understands and demonstrates the connection between Einstein's field and Keynes's aggregate.He understands that both Keynes and Einstein realized that the whole is more than just the sum of the parts while at the same time recognizing that neither Keynes nor Einstein were organicists.T recognizes that Keynes's economic decision makers are still rational individuals,but that they are attempting to optimize in an environment of pervasive uncertainty and ignorance that is completely antithetical to the classical and neoclassical concept of maximizing under risk.T gives a good contrast by citing Tobin's famous article,"Liquidity Preference as Behavior Toward Risk",and demonstrating that Tobin has no idea of Keynes's generalized model of individual and aggregate decision making under risk,uncertainty,and ignorance.Thus,Tobin's paper is a special case of Keynes's general case.All neoclassical theories of decision making and macroeconomics are thus special theories.Unfortunately,T is not able to go beyond a strictly literary exposition. T ignores and/or overlooks the very specific mathematical and logical constructs created ,not only by Keynes in 1921 and 1936,but by Ellsberg in 1961 and 1962.At the individual micro level,Keynes's index to measure w,the completeness of a decision maker's information set or the weight of the evidence(the uncertainty of the GT is an inverse function of w),defines the variable w to be an element of the unit interval [0,1].Ellsberg defines his variable,rho,used to measure the degree of confidence of a decision maker in his information set,to be an element of the unit interval [0,1].If w=1 or rho =1(the individual's information set is complete and has no ambiguity ) and all probabilities are linear so that there are no nonlinear probabilities(subadditive or superadditive decision weights),then one obtains the special case of classical or neoclassical decision making under risk and/or certainty equivalences.Using Tobin as an example ,he implicitly assumes that w(rho)=1 and all probabilities are linear.How does Keynes express this analysis at the macrolevel?On pp.261-262 of the GT,Keynes gives the corresponding macro condition that incorporates the problem of decision making under ambiguity/uncertainty at the microlevel.It is that the mpc(marginal propensity to consume)=1.If the capital stock is not at an optimal level,then the condition is expressed as mpc+mpi=1,where mpi is the marginal propensity to invest.The effect of individual,microscopic decision making under uncertainty/ambiguity/ignorance will manifest itself macroscopically in the mpi term.Thus,mpc+mpi will in general be less than 1.Keynes derived the following optimality condition in chapters 20 and 21 of the GT that incorporates this condition,based on a microfoundations at the firm-industry level using the theory of purely competitive firms.The condition is that w/p=mpl/(mpc+mpi),where the mpl is the marginal product of labor derived from an aggregate production function.If mpc+mpi<1(the marginal propensity to spend is less than 1),then involuntary unemployment will exist and labor,as a whole,will be unable to eliminate this type of unemployment by cutting their money wage.Thus,Keynes proved mathematically that the logical reason for the existence of involuntary unemployment at the macroscopic level is the existence of ambiguity/uncertainty at the microeconomic level.T covers none of the specifics of Keynes's argument at the mathematical or logical level.He is ,however,on the right track and a reader of this review would benefit from buying this book and absorbing the contents.

Most of the consumer Reviews tell that the "Keynes and the Neoclassical Synthesis: Einsteinian versus Newtonian Macroeconomics (Routledge Studies in the History of Economics)" are high quality item. You can read each testimony from consumers to find out cons and pros from Keynes and the Neoclassical Synthesis: Einsteinian versus Newtonian Macroeconomics (Routledge Studies in the History of Economics) ...