Monday, July 8, 2013

News flash! Hayek and Keynes both draw on Wicksell!

Why is this being treated like some long buried mystery?

The natural rate discussion here and in the linked post is overwrought IMO.

7 comments:

  1. Paul Davidson and Ludwig von Mises are basically one in the same. I see hints of Adam Smith in the work of both.

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    1. What's important to remember to is that the Post Keynesian view just below the surface here is actually somewhat extreme even for PKs. Lots of them are quite comfortable with natural rate analysis.

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  2. Leijonhuvfud's paper "The Wicksell Connection" makes this very clear, as well. He argues that really, only Fisher/Friedman's macro is relatively innocent of Wicksell.

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  3. Surely the reason this is interesting despite it's not being news (Shackle and Robertson were noting this decades ago) is that we have Hayek versus Keynes videos, And even as intelligent a person as Jonathan meets yet another Demonstration that their views were largely compatible with mockery.

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    1. Well shit, Keynes and Hayek said it!

      :)

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  4. Hi Ryan:
    Yes Leijonhufvud is the relevant paper on that. I would also recommend Amadeo's book "Keynes' Principle of Effective Demand."
    Best,
    Matías

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  5. Isn't it amazing how everyone seems to be at each others' throats?

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