The Theoretical Reaction Against Keynesianism

Abstract

The 1960s and 1970s have witnessed a powerful theoretical reaction against Keynesianism. In most countries (and especially the United States) there has been a noticeable swing back towards pre-Keynesian analytical ideas. Has this counterrevolution succeeded in demolishing Keynes’s arguments about the instability of a capitalist economy, or has it merely resurrected the old pre-Keynesian assumptions in a more sophisticated form? This is the question to which this chapter is devoted.