Wynne Godley pp 187-202 | Cite as


  • Alan Shipman


A sidelining from policy advice and weekly squash games with a noted editor give Godley a commission for a book that will distil the revised approach to the macroeconomy that has taken shape through work on the CEPG’s model and policy reviews. Godley turns to Cripps as co-author, and in 1983 they publish the book which they hope will bring their views to the attention of other economists, challenging the mainstream. The book contains innovations which they believe can show the flaws in the ‘neoclassical’ explanations of economic stabilisation and growth and set out the groundwork for a Keynesian alternative. These include endogenous money creation, mark-up price setting, assessment of the whole system for stock-flow consistency by including balance sheets with income flows and a system of inflation accounting enabling the separation of ‘real’ effects from those of price changes. Despite their hopes of refounding the subject, the book is ignored or misunderstood by most Keynesians and condemned by other economists, its abstraction and technical demands ruling out a wider public audience.


  1. Cripps, F., Fetherston, M., & Godley, W. (1976, March). What is left of ‘New Cambridge’? Cambridge Economic Policy Review, 2, 46–49.Google Scholar
  2. Godley, W. (1975, July 28). Oral evidence to Public Expenditure Committee.Google Scholar
  3. Godley, W. (1999). The opponent. In A. Holden & U. Owen (Eds.), There Are Kermodians: A Liber Amicorum for Frank Kermode (pp. 46–49). London: David Campbell Publishers.Google Scholar
  4. Godley, W. (2007). Background memories. In W. Godley & M. Lavoie (Eds.), Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth (pp. xxxv–xxxix). Basingstoke: Palgrave Macmillan.Google Scholar
  5. Godley, W., & Cripps, F. (1983). Macroeconomics. London: Fontana.Google Scholar
  6. Hansen, A. H. (1953). A Guide to Keynes. New York: McGraw-Hill.Google Scholar
  7. Kehoe, T. J. (1998). Social accounting matrices and applied general equilibrium models. In I. Begg & S. G. B. Henry (Eds.), Applied Economics and Public Policy (Department of Applied Economics Occasional Paper 63). Cambridge: Cambridge University Press.Google Scholar
  8. Lavoie, M. (2007). Joint authorship background. In W. Godley & M. Lavoie (Eds.), Monetary Economics: An Integrated Approach to Credit, Money, Income, Production and Wealth (pp. xxxix–xliii). Basingstoke: Palgrave Macmillan.Google Scholar
  9. Peston, M. (1983, May 12). A failed attempt to reconstruct Keynes. The Times, p. 27.Google Scholar
  10. Rowthorn, R. E. (1977). Conflict, inflation and money. Cambridge Journal of Economics, 1, 215–239.Google Scholar
  11. Rowthorn, R. E. (1980). Capitalism, Conflict and Inflation: Essays in Political Economy. London: Lawrence & Wishart.Google Scholar
  12. Samuelson, P. A. (1948). Economics (1st ed.). New York: McGraw-Hill.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Alan Shipman
    • 1
  1. 1.Department of EconomicsThe Open UniversityMilton KeynesUK

Personalised recommendations