What future for ‘Macroeconomics after Keynes’? A road map to restore the generality of The General Theory

Togati, Teodoro Dario

doi:10.4337/9781786439888.00012

Cited by 1 publication

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“…In particular, as is well known, throughout the years, general equilibrium has managed to absorb many of the Keynesian novelties through a linguistic reformulation carried out on the grounds of the axioms of individual rationality replacing Keynes's "quasi-naturalistic" foundations, with obvious loss of meaning: uncertainty has been reduced to probabilistic calculus, money to "confetti", expectations to rational expectations, involuntary unemployment to the natural rate of unemployment, and so on (e.g., Togati, 2018).…”

Section: Extensive Generalitymentioning

confidence: 99%

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On the “Generality” of the General Theory. Or Why Keynes Lost His Battle and What to Do to Re-win It Again

Togati¹

2020

CBR

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The paper emphasizes the true "generality" of the General Theory (GT) in the face of the dominant view, according to which Keynes's theory is captured by "Keynesian outcomes" in axiomatic general equilibrium models due to market imperfections. However, it argues that the advocates of generality must make a serious effort to re-conceptualize the GT in a very broad perspective. One must understand both its limitations and why the generality debate after the GT has failed to reconsider it in a proper way and what to do to restore Keynes's generality claim in the present context. This paper's contribution is twofold. The first is to make a distinction between three different dimensions of the generality issue and suggest that Keynes failed to grasp their full significance because he was facing the Marshallian orthodoxy, rather than general equilibrium. The second contribution is to suggest that one way to restore Keynes's generality claim is to stress that he belongs to an alternative paradigm that has several features in common with contemporary modernist revolution and with Einstein's relativity theory in particular.

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Section: Extensive Generalitymentioning

confidence: 99%

“…First of all, the Einsteinian perspective helps us to understand that the GT is a product of Modernism-an extraordinary period which sees many contemporary revolutions and projects of "general theory" in several fields, from art to physics-involving a sharp departure from XIX century approaches (see also Togati, 2012;2018;2020).…”

Section: Postulatesmentioning

confidence: 99%

On the “Generality” of the General Theory. Or Why Keynes Lost His Battle and What to Do to Re-win It Again

Togati¹

2020

CBR

View full text Add to dashboard Cite

show abstract

What future for ‘Macroeconomics after Keynes’? A road map to restore the generality of The General Theory

Cited by 1 publication

References 0 publications

On the “Generality” of the General Theory. Or Why Keynes Lost His Battle and What to Do to Re-win It Again

On the “Generality” of the General Theory. Or Why Keynes Lost His Battle and What to Do to Re-win It Again

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