The New Classical counter-revolution in the economic theory movement stemmed from the unravelling of the "capital-labor accord" in WWII. Good, old-fashioned, Keynesian economics (GOKE) substitutes the general and unmotivated assumption of downward money wage rigidity for the detailed examination of the varied social coordination problems that characterize modern capitalist economies. The importance of this counter culture movement is that it underrates Keynes' role as a precursor of modern information economics and risks losing significant policy insights.
Authors: Duncan Foley
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