On Keynesian Economics and the Economics of Keynes: A Study in Monetary Theory by Axel Leijonhufvud
Requirements: .ePUB reader, 1.0 mb
Overview: Axel Leijonhufvud (6 September 1933 – 2 May 2022) was a Swedish economist and professor emeritus at the University of California, Los Angeles (UCLA), and professor at the University of Trento, Italy. Leijonhufvud focused his studies on macroeconomic monetary theory. In his defining book On Keynesian Economics and the Economics of Keynes (1968), he made the case that John Hicks’ IS/LM (Investment—Saving / Liquidity preference—Money supply) formulation was an inadequate explanation for the “involuntary unemployment” in Keynes’s writings. Rather, Leijonhufvud’s reading of Keynes emphasized disequilibrium phenomena, which cannot be addressed in the IS/LM framework, as central to Keynes’ explanation of unemployment and economic depression.
Leijonhufvud used this observation as a point of departure to advocate a “cybernetic” approach to macroeconomics, where the algorithm by which prices and quantities adjust is explicitly specified, allowing the dynamic economy to be studied without imposing the standard Walrasian equilibrium concept. In particular, Leijonhufvud advocated formally modelling the process by which information moves through the economy. While the “cybernetic” approach may have failed to gain traction in mainstream economics, it presaged the rational expectations revolution that would ultimately supplant the IS/LM model as the dominant paradigm in academic macroeconomics.
Genre: Non-Fiction > Educational
Download Instructions:
https://ouo.io/wESJA2G
https://ouo.io/4bnzoX
