Macroeconomics of Aggregate Supply and New Classical Macroeconomics

Giuseppe Chirichiello
Additional contact information
Giuseppe Chirichiello: University ‘La Sapienza’

Chapter 4 in Macroeconomic Models and Controversies, 1994, pp 132-178 from Palgrave Macmillan

Abstract: Abstract So far the principal argument of our analysis has been the Keynes—classics controversy and this has provided us with a framework which reproposes classical macroeconomics from a Walrasian and monetarist point of view and tends to refute Keynesian theory and policy recommendations. Indeed, the Keynesian—classics controversy can be summed up in two main points: (a) Keynesian general cases have been proved to be special cases of traditional theory; and (b) although intended for a microeconomic context, Walrasian general equilibrium has also proved useful in a macroeconomic context Since from the point of view of theory Keynesian unemployment equilibrium appears no longer as a necessary consequence of (a) and (b), macroeconomics is freed from choosing to adhere or not to Keynes’s theory. This point can be used as a point of departure for reconstructing macroeconomics in the 1970s because it explains why macroeconomics tended towards the monetarist counter-revolution.

Keywords: Inflation Rate; Real Wage; Aggregate Demand; Supply Curve; Phillips Curve (search for similar items in EconPapers)
Date: 1994
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-37106-4_5

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230371064

DOI: 10.1057/9780230371064_5

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().