"Prices, wages and business cycles"

By:

"Klein, Burton H."

Material type: Text

TextPublication details: New York; Pergamon Press; 1984Description: 199 pISBN:

80301266

Subject(s):

Economics

DDC classification:

338.6084 KLE

Summary: As an unrepentant Keynesian, I not only accept Keynes's prescription for dealing with very serious economic downturns, but also share his skepticism about the usefulness of classical microeconomics as a predictive theory. This is not to say that classical economics cannot make good predictions. For example, it can make amazingly good predictions about the outcome of auctions, even when the auc tioneer does not know beforehand the prices necessary to clear a market. More over, the classical law of supply and demand can make very good short-term predictions; for example, if OPEC restricts the supply of oil, gasoline prices will surely rise. But longer-term predictions-predictions about the rates of progress in various industries or the size of economic downturns-it cannot make. It cannot, because it does not contain the needed parameters.

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Holdings
Item type	Current library	Call number	Status	Date due	Barcode	Item holds
Books	Gandhi Smriti Library	338.6084 KLE (Browse shelf(Opens below))	Available		20504

Total holds: 0

As an unrepentant Keynesian, I not only accept Keynes's prescription for dealing with very serious economic downturns, but also share his skepticism about the usefulness of classical microeconomics as a predictive theory. This is not to say that classical economics cannot make good predictions. For example, it can make amazingly good predictions about the outcome of auctions, even when the auc tioneer does not know beforehand the prices necessary to clear a market. More over, the classical law of supply and demand can make very good short-term predictions; for example, if OPEC restricts the supply of oil, gasoline prices will surely rise. But longer-term predictions-predictions about the rates of progress in various industries or the size of economic downturns-it cannot make. It cannot, because it does not contain the needed parameters.

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