Keynes' General Th&ry was a brilliant attanpt to plain the paradoxof 1CM interest rates, ineffectual easy rn,netaxy policy, and lowinvestrtntduring the Great Depression. We argue that Keynes' failure to distinguishbetween low naninal and high real interest rates led hint to misinterpret atight...

Like the proverbial chicken and the egg, economic events and macroeconomic theory have borne an ongoing ambiguous relationship to one another. Keynes himself, in his scathing indictment of the influence of "academic scribblers" on actual policy, pointed to one such avenue of impact. George...