Overview
- Sheds new light on developments in macroeconomics since the Great Depression
- Follows how the debates concerning the Great Depression impacted later macroeconomic theories and policies
- Covers the rise of Keynesianism in the 1950s and its decline since the 1970s
Part of the book series: Springer Studies in the History of Economic Thought (SSHET)
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Table of contents (15 chapters)
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Front Matter
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Theory and Policy Around the Great Depression
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Front Matter
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Keynes’s and Hayek’s New Thinking: 1936 to 1946
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Front Matter
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1950s to 1980s: The Years of Keynesianism and The Counter Revolutions
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Front Matter
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Macroeconomics Before the Long Recession: The Return of Micro and Decline of Macro
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Front Matter
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Keywords
About this book
This book assesses major schools of thought in macroeconomic theory between the Great Depression and the Long Recession, focusing on their analysis of cycles, crises and macro-policy. It explores the road from the dominance of Keynesian ideas to those of New Classical Macroeconomics (NCM) toward the end of the millennium.
The book covers the early influential work of Knut Wicksell; the economic debates of the 1930s, with core contributions from John Maynard Keynes and Friedrich von Hayek; the rise of Keynesianism in the 1950s and its decline since the 1970s; the rise of Monetarism in the 1960s; and NCM’s subsequent rise to prominence.
Finally, the book outlines how macroeconomics has evolved from its birth in the 1930s as a theory separate from microeconomics, resulting in a split between macro- and micro-theories, and ended up with a new hegemonic paradigm based on microfoundations. The ensuing policy thinking witnessed a transformation from "active" macro-policy after the Great Depression to a far more "passive" macro-policy during the last quarter of the twentieth century, which may have contributed to missing the signs of the impending Long Recession of 2008.
“When the 2008 crisis struck, macroeconomists were caught with models that were theoretically elegant yet inappropriate to the needs of the moment. A broader historical perspective may have prevented the jettisoning of Keynesian models that had proved useful in the past and might have done so again. This highly readable book by Arie Arnon is a wonderful antidote to economists’ short time horizon and contributes mightily to restore the profession’s “collective memory” of the diversity of ideas within macroeconomics.”
Professor Dani Rodrik, Harvard Kennedy SchoolReviews
“This book can serve as a ground-clearing exercise from which a new direction in macroeconomics can spring? Nothing would please the author more. This book is explicitly a work of the history of economic thought, engaging with the literature on the history of thought as much as with the primary texts that mark milestones in that history. As a sometime historian of economic thought myself, there is much here that is familiar but also much that is new.” (Perry Mehrling, Journal of the History of Economic Thought, Vol. 55 (2), 2023)
“This new opus by Arie Arnon was very much awaited. Given the strong emphasis laid on the monetary thinking of the different authors considered, and particularly their views regarding the proper conduct of monetary policy, this new work will be especially appreciated by those … interested in monetary issues within the subfield of macroeconomics. … Arnon’s book is a great achievement … and should find its place on the shelf of anyone interestedin the history of monetary macroeconomics.” (Pierrick Clerc, History of Political Economy, Vol. 55 (2), April, 2023)
Authors and Affiliations
About the author
Arie Arnon is a Professor Emeritus of Economics at Ben Gurion University (Israel); an Associate Fellow of the Truman Institute, Hebrew University; and the Israeli coordinator of the Aix Group. Since 2007 Arnon has coordinated the Thomas Guggenheim Program on the History of Economic Thought at Ben Gurion University. He works mainly in the field of history of economic thought, covering monetary theory and macroeconomics. His publications include "Thomas Tooke: Pioneer of Monetary Theory" (1991) and "Monetary Theory and Policy from Hume and Smith to Wicksell: Money, Credit and the Economy" (2011), which received the Best Book Award from ESHET - the European Society for the History of Economic Thought - in 2012.
Bibliographic Information
Book Title: Debates in Macroeconomics from the Great Depression to the Long Recession
Book Subtitle: Cycles, Crises and Policy Responses
Authors: Arie Arnon
Series Title: Springer Studies in the History of Economic Thought
DOI: https://doi.org/10.1007/978-3-030-97703-0
Publisher: Springer Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2022
Hardcover ISBN: 978-3-030-97702-3Published: 07 May 2022
Softcover ISBN: 978-3-030-97705-4Published: 08 May 2023
eBook ISBN: 978-3-030-97703-0Published: 06 May 2022
Series ISSN: 2662-6098
Series E-ISSN: 2662-6101
Edition Number: 1
Number of Pages: XXVI, 318
Number of Illustrations: 2 b/w illustrations
Topics: History of Economic Thought/Methodology, Macroeconomics/Monetary Economics//Financial Economics, Economic Policy, Economic History