The Institutionalist Movement in American Economics, 1918–1947

Abstract

This book provides a detailed picture of the institutionalist movement in American economics concentrating on the period between the two World Wars. The discussion brings a new emphasis on the leading role of Walton Hamilton in the formation of institutionalism, on the special importance of the ideals of 'science' and 'social control' embodied within the movement, on the large and close network of individuals involved, on the educational programs and research organizations created by institutionalists and on the significant place of the movement within the mainstream of interwar American economics. In these ways the book focuses on the group most closely involved in the active promotion of the movement, on how they themselves constructed it, on its original intellectual appeal and promise and on its institutional supports and sources of funding.

Do economists make policies? On the political effects of economics

“…In this case, at least, the success of economists' policy devices increased their professional authority. At the same time, older institutional approaches to economics were being replaced with the modern mathematical-Keynesian synthesis (Yonay, 1998;Weintraub, 2002;Rutherford, 2011). Upping the mathematical ante attempted to make economics more of a science, and thus more deserving of authority.…”

Rediscovering the 1%: Economic Expertise and Inequality Knowledge

“…Institutionalists would play an important role in integrating private and public data collection efforts, in part through the influence of Herbert Hoover who advocated such efforts strongly from his position as Secretary of Commerce and President (Alchon 1985, Barber 1985, Rutherford 2011). …”

“…The modern divide of macroeconomics and microeconomics emerged in the 1930s, alongside the terms themselves. Institutional economics faded away in the immediate post-war era, replaced by the synthesis of evermore mathematical neoclassical microeconomics and Keynesian macroeconomics (Yonay 1998, Rutherford 2011. While the institutionalists had been heavily involved in the creation of official statistics, it would be the Keynesians and neoclassicals who would take charge of finalizing the regimes of perceptibility built around those data.…”

“A força da liderança com ideias” ou “Thatcher, Hayek e o Brasil”

“…Influenciada pelas ideias hayekianas e dotada de forte senso de estar servindo a interesses da elite britânica, representada pelo Partido Conservador, Thatcher empreendeu reformas profundas que se pautaram pela desregulamentação do setor financeiro, pelo combate aos monopólios estatais (por meio das privatizações) 18 Rutherford (2011), após estudar durante 4 décadas o assunto, afirmou que o institucionalismo esteve no centro da economia acadêmica e política norte-americana no período entreguerras. Portanto, as ideias de Keynes chegaram para os norte-americanos após a influência dos economistas citados já ter sido exercida sobre o New Deal 20 .…”