funeralxempire wrote:
Mona Pereth wrote:
Be that as it may, the person you were replying to, stratozyck, is an actual economist, thus in a better position than you to evaluate whether Keynes's "entire work is pseudoscience" or whether "his approach is largely abandoned basically everywhere."
This is why a big portion of people informed by the Chicago school (and similar) appear more like the Cult of The Invisible Hand instead of a credible school of economic thought.
These days, not only are we all Keynesians (as Milton Friedman sort-of said), but we're also all informed by the Chicago school. They're both key parts of the new neoclassical synthesis. The Austrians are closer to being a cult.
Dengashinobi wrote:
How is keynesian economics foundational part of macroeconomics? Any examples of major contemporary keynesian policies today? Even if there are, it's more likely policies made by democrats who want to appear as if they are helping the economy. There is no shortage of crony economists who want to further their carear by entertaining the desires of an economically illiterate voter base. Keynesianism is as obsolete as lobotomy.
Some key elements of Keynesianism that are important to modern economics include the idea of economic stimulus during downturns, price "stickiness", and the idea of imperfect competition. New Keynesianism is one of the major components of the new neoclassical synthesis, which is taught to undergraduate economists throughout elite universities, including in, for example, Greg Mankiw's textbook. The idea of cutting taxes to stimulate the economy is itself Keynesian.
Most economists don't have any real exposure to the "voter base". Nobody knows who Austan Goolsbee is.
There are two ways for an economist to become somewhat famous:
1) be really weird and also have the ear of a major politician (like that guy from Cardiff University who kept giving Liz Truss bad advice)
2) write a book (best case scenario is that this makes you as famous as Steven Levitt)
For real success you need both, like Keynes and Friedman. I don't think nyone active today is that famous.
Yes Keynesianism is still tought here and there, but overall is obsolete, especially if you take into account that it used to be the absolute mainstream a few dacades ago. Milton Friedman's remark refers probably to monetarism being yet another state interventionist policy like Keynesianism used to be. But Monetarism is not Keynesianism.
I said the bit about the voter bade in anticipation of examples of Keynesian policies practiced today by the government. Crony economists can be hired from politicians with a certain agenda.
21 Feb 2023, 1:20 pm
