This paper provides a reappraisal of the monetarist counter-revolution. The paper introduces a novel distinction between "theoretical" and "empirical" monetarism. Theoretical monetarism is identified as a critique of the IS/LM transmission mechanism. However, the IS/LM can be readily modified to...

This paper argues that Keynes's "theory of effective demand" merely restates in outwardly novel aggregative terms ideas that are part and parcel of "classical theory," and so adds nothing of substance to orthodox doctrine. The aim of the paper is to impugn neither The General Theory nor...

This note examine's Clower's recent criticisms of Keynes' theory of effective demand and argues that Keynes added much to Marshallian theory when he extended to the aggregate level, that his theory does have implications for unemployment without requiring wage rigidity, that his theory does not...

The author argues that demand management was abandoned in the 1970s because, as presently understood, it proved incapable of controlling the world-wide acceleration of inflation that began in the 1960s, that led to the abandonment of the Bretton Woods system of fixed exchange rates in 1973, and...

The current critical discussions of IS-LM/AS-AD models are approached from the perspective of Hicks’ original 1937 SI-LL model. The relevant features of this model are summarized and the geometrical representation of IS and LM curves in the original model and some of its variants is discussed....

Paul Davidson is one the best known and influential Post Keynesian economists alive today. He has insisted throughout his career that economists should focus on real world problems and that the purpose of economic policy is to help society become more humane and civilized. He is also known for...

This paper develops a real-exchange production-coordination model in which price-setting firms produce complementary inputs that are converted into and traded for a final good produced by a competitive sector. A rigid real-price regime is shown to be consistent with both rational firm behavior...

Part of a Symposium entitled, "Say's Law Revisited," this note is dedicated to showing that both Say's and Ricardo's concerns about unemployment were deeper than even the Kates article (in this symposium) suggests, that this concern even led Say to advocate a clear Keynesian remedy for...