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January 24, 2009
Paul Krugman, stickler on the history of economic thought?
Is it too much to ask that someone criticizing Keynes actually, you know, read Keynes …? It is, of course, a perfectly reasonable request. But it’s pretty funny for the request to come from the same person who declared: Until John Maynard Keynes published The General Theory of Employment, Interest, and Money in 1936, economics—at least in the English-speaking world—was completely dominated by free-market orthodoxy. Heresies would occasionally pop up, but they were always suppressed. Krugman’s declaration here shows that has not actually, you know, read the pre-1936 economics literature to which he refers. (He has, instead, read and repeated Keynes’ mis-characterization of it.) Never mind that the anti-free-market Institutionalists were not "completely dominated" or "suppressed". The two leading neoclassical economists of the English-speaking world c. 1910, Alfred Marshall and Irving Fisher, both explicitly rejected the doctrine of laissez faire. Posted by Lawrence H. White at 12:23 AM in Economics
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