The Keynesian revolution and classical theory

.

Chapter 4 in Classical Economic Theory and the Modern Economy, 2020, pp 56-84 from Edward Elgar Publishing

Abstract: The chapter provides an introduction to classical economic theory in contrast to modern macroeconomics. Classical economists denied that recessions, which were frequent, were ever caused by oversaving and a lack of demand, and that increased public spending could ever hasten a return to full employment. Modern economic theory and policy since 1936 has emphasized demand deficiency as the major, if not the sole cause of recessions, and that an increase in public spending not only can but is necessary to generate recovery. The classical theory of the cycle, it is argued, remains the deepest analysis of the operation of an economy ever devised.

Keywords: Economics and Finance (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/view/9781786433565.00007.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

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:elg:eechap:17468_4

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().