3 ms·
On the contrary, for economics in the context of academia (i.e. economists, rather than politicians) Keynesianism is the consensus view. Though the consensus is
by brianchu 14y ago
On the contrary, for economics in the context of academia (i.e. economists, rather than politicians) Keynesianism is the consensus view. Though the consensus is not as ironclad, as, say, evolution is for biologists.
Even monetarists (i.e. Milton Friedman) support central banking in the abstract (though they would oppose some of the policies of the current Fed).
- calpaterson 14y ago> On the contrary, for economics in the context of academia (i.e. economists, rather than politicians) Keynesianism is the consensus view. Wikipedia claims that it's been consensus among academics only since 2008, and before 2008 the consensus was the exact opposite: New Classicism and friends. http://en.wikipedia.org/w/index.php?title=2008%E2%80%932009_Keynesian_resurgence&oldid=535117157#In_academia http://en.wikipedia.org/w/index.php?title=2008%E2%80%932009_... But anyway, the Economist is not aimed solely at academics and my memory of the Keynesianism there goes back further than 2008. Plus I don't know that I'd call monetarists Keynesians, per se.
- brianchu 14y agoKeynesianism used to be the consensus after WWII. Keynesian economists did, though, lose influence in the 70s due to economic stagflation. The crisis of 2008 and its response didn't necessarily cause Keynesianism to "switch over" into the mainstream; in fact the reason that the US response to the crisis was to have a stimulus package and quantitative easing was because Keynesianism is and was part of the mainstream. Keynesianism certainly did become more prominent after the crisis. Ben Bernanke, believe it or not, is a monetarist [1]. Monetarist ideas and Keynesian ideas are not necessarily mutually exclusive. [1] http://reason.com/archives/2009/09/01/friedman-economics/ http://reason.com/archives/2009/09/01/friedman-economics/