Abstract
The term ‘Keynesian Revolution’ suggests that Keynes’s General Theory (1936) overthrew a defective and discredited classical orthodoxy and created a new understanding of how economies work. However, Keynes’s critique of earlier work seriously misrepresented it, and his new system was, in fact, a synthesis of components drawn from it. Keynes’s analysis nevertheless embodied an original and radical vision of how a monetary economy functions. The widespread adoption of the IS–LM interpretation of his system began a process of obscuring that vision, and economics has now largely lost sight of it.
This chapter was originally published in The New Palgrave Dictionary of Economics, 2nd edition, 2008. Edited by Steven N. Durlauf and Lawrence E. Blume
This is a preview of subscription content, log in via an institution to check access.
Bibliography
Backhouse, R., and D. Laidler. 2004. What was lost with IS–LM. In The IS–LM Model: Its rise, fall and strange persistence, ed. M. de Vroey and K. Hoover. Durham: Duke University Press.
Fisher, I. 1907. The rate of interest: Its nature, determination, and relation to economic phenomena. New York: Macmillan.
Hansen, A. 1953. A guide to Keynes. New York: McGraw Hill.
Hawtrey, R. 1919. Currency and credit. London: Longmans Group.
von Hayek, F.A. 1931. Prices and production. London: Routledge.
Kahn, R. 1931. The relation of home investment to unemployment. Economic Journal 41: 173–198.
Keynes, J.M. 1930. A treatise on money. London: Macmillan.
Keynes, J.M. 1936. The general theory of employment, interest and money. London: Macmillan.
Klein, L. 1947. The Keynesian revolution. New York: Macmillan.
Laidler, D. 1999. Fabricating the Keynesian revolution. Cambridge: Cambridge University Press.
Lavington, F. 1921. The English capital market. London: Methuen.
Leijonhufvud, A. 1968. On Keynesian economics and the economics of Keynes. London: Oxford University Press.
Lucas, R. Jr., and T. Sargent. 1978. After Keynesian economics. In Rational expectations and econometric practice, ed. R. Lucas Jr. and T. Sargent. London: Allen and Unwin.
Mill, J. S. 1844. On the influence of consumption upon production. In Essays on unsettled questions in political economy. London: Longmans, Green, Reader and Dyer.
Myrdal, G. 1931. Monetary equilibrium, 1939. London: W. Hodge.
Patinkin, D. 1976. Keynes and econometrics: On the interaction between the macroeconomic revolutions of the interwar period. Econometrica 44: 1091–1123.
Pigou, A. 1927. Industrial fluctuations. London: Macmillan.
Robbins, L. 1934. The great depression. London: Macmillan.
Robertson, D. 1926. Banking policy and the price level. London: Macmillan.
Tarshis, L. 1987. Keynesian revolution. In The new Palgrave: A dictionary of economics, ed. J. Eatwell, M. Milgate, and P. Newman, vol. 3. London: Macmillan.
Warming, J. 1932. International difficulties arising out of the financing of public works during depression. Economic Journal 42: 211–224.
Wicksell, K. 1898. Interest and prices. Trans. R. Kahn. London: Macmillan, 1936.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2008 The Author(s)
About this entry
Cite this entry
Laidler, D. (2008). Keynesian Revolution. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95121-5_1254-2
Download citation
DOI: https://doi.org/10.1057/978-1-349-95121-5_1254-2
Received:
Accepted:
Published:
Publisher Name: Palgrave Macmillan, London
Online ISBN: 978-1-349-95121-5
eBook Packages: Springer Reference Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences
Publish with us
Chapter history
-
Latest
Keynesian Revolution- Published:
- 29 March 2017
DOI: https://doi.org/10.1057/978-1-349-95121-5_1254-2
-
Original
Keynesian Revolution- Published:
- 30 November 2016
DOI: https://doi.org/10.1057/978-1-349-95121-5_1254-1