The Keynes Debate

I don’t know if you readers have been following the debate on Keynes that seems to have started with Paul Krugman’s recent piece in the NY Times. It’s an interesting debate that pits economists from one school of thought against those of another kindergarten of thought. A few days ago, I read Richard Posner’s article in The New Republic “How I Became  A Keynesian“, in which he says he finally read Keynes’ book The General Theory of Employment, Interest, and Money, a tome that apparently has fallen by the wayside in most economics curricula these days. Here, finally, is Krugman’s review in the Guardian of a new book (by Robert Skidelsky) on Keynes.

If you’re at all interested in questions of how the economy works, how government should or should not get involved, how ideology may influence and distort economic decision making, and why you should care about all these things, then this is obligatory reading. In fact, it made me get a book off the shelf last night, where it had been collecting dust, that I had been wanting to read for a long time: The Affluent Society.

And finally, although you may disagree with some of these ideas after reading the above, a short discussion of rational expectations and efficient markets.


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