Standard and Classical Economics

Abstract

Several theories that seek to explain production and distribution in the capitalist society coexist in economics. Neoclassical, Keynesian, and classical theories constitute the most important ones. Are these theories able to explain the eight empirical regularities of capitalism presented in chapter 2? This chapter presents, first, the foundations of these theories, then follows short-run models and their empirical predictions, which are finally confronted against the relevant empirical regularities.