A great deal of modern economics is theoretical. Theories are all very well, but if theory is to be useful as a guide to practice, then a comparison needs to be made, from time to time, between the predictions of the theories and the touchstone of the objective reality. This is the more important because, as Keynes pointed out, ‘Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist.’1
KeywordsIncome Expense Arena Encapsulation Rosen
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- 1.J. M. Keynes, The General Theory of Incomes, Prices and Money (London: Macmillan, 1936).Google Scholar
- 2.Sumner N. Rosen, ‘Keynes without Gadflies’, in A Critique of Economic Theory, ed. E. K. Hunt and Jesse G. Schwartz (Harmondsworth: Penguin, 1972.) pp. 399–400.Google Scholar
- 3.John C. Carrington and George T. Edwards, Financing Industrial Investment (London: Macmillan, 1979).Google Scholar