Struggle Over The Keynesian Heritage

After John Maynard Keynes revolutionized economic thought in 1936, there began a keen struggle in the economics profession to digest and refine Keynes new system. The heart of this debate over Keynes radical ideas has been whether they could or should be reconciled with the older, neoclassical economic theory. The two main branches of thinkers in the Keynesian tradition are the Post Keynesians and the Neoclassical Synthesists. Post Keynesians believe that Keynesian ideas have overthrown the neoclassical belief in efficient, free markets. Neoclassical Synthesists accept Keynesian arguments for shortterm economic consequences, but they believe that free markets achieve the best longterm results. Two famous economists discussed in this audiotape presentation are Joan Robinson and Paul Samuelson. Central to this debate are questions about how long the market can or should take to correct undesirable circumstances; whether the free market is a collection of individuals, or a competitive arena for powerful economic groups that overwhelm individuals; and what is (or should be) the influence of money on production and exchange.