Springer Nature is making SARS-CoV-2 and COVID-19 research free. View research | View latest news | Sign up for updates

On eclecticism, or we are (almost) all neo-classical neo-Keynesians now

  • 24 Accesses

  • 4 Citations


Mainstream economics deals with allocation and income distribution in neoclassical fashion, while the macro-economics of underspending and overspending are handled in a neo-Keynesian spirit. The question is whether this type of eclectic synthesis can be reproached for being inconsistent. The author tries to answer this question for a situation of low investment, low profits, low employment, unused capacity and a wage-price spiral. He argues that, though some elements of the neo-classical allocation and distribution theory are lost, the main neo-classical body can cope with situations of underspending. However, not without limits. Outside a ‘corridor’ á la Leijonhufvud, situations may arise where the eclectic synthesis may fail. The author enumerates ten factors determining the boundaries of such a corridor.

This is a preview of subscription content, log in to check access.

Author information

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Pen, J. On eclecticism, or we are (almost) all neo-classical neo-Keynesians now. De Economist 129, 127–150 (1981). https://doi.org/10.1007/BF01705870

Download citation


  • International Economic
  • Public Finance
  • Income Distribution
  • Distribution Theory
  • Mainstream Economics