Keynesian Economics: In Search of Unnatural Stability

Research output: Contribution to journalArticle

Abstract

I shall argue that Keynesian economics shares the same lack of scientific rigour as the mainstream economics it attempts to criticise. The difference in approaches is political, with both equally failing to explain the behaviour of the capitalist economy. In contrast, Marx's analysis of capitalism predicts tendential behaviour that does fit empirical evidence, noticeably concentration, growing inequality and continued cyclical behaviour/inherent instability (ultimately resulting from the tendency for profitability to fall in boom). Finally I consider how application of Keynesian economics may have contributed, and continue to contribute, to the relative stagnation of the economy since the end of the Golden Age.
Original languageEnglish
Pages (from-to)183-197
Number of pages15
JournalCritique
Volume41
Issue number2
Publication statusPublished - 2013

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Economics
Economy
Profitability
Empirical Evidence
Karl Marx
Boom
Capitalism

Cite this

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abstract = "I shall argue that Keynesian economics shares the same lack of scientific rigour as the mainstream economics it attempts to criticise. The difference in approaches is political, with both equally failing to explain the behaviour of the capitalist economy. In contrast, Marx's analysis of capitalism predicts tendential behaviour that does fit empirical evidence, noticeably concentration, growing inequality and continued cyclical behaviour/inherent instability (ultimately resulting from the tendency for profitability to fall in boom). Finally I consider how application of Keynesian economics may have contributed, and continue to contribute, to the relative stagnation of the economy since the end of the Golden Age.",
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Keynesian Economics : In Search of Unnatural Stability. / Potts, Nicholas.

In: Critique, Vol. 41, No. 2, 2013, p. 183-197.

Research output: Contribution to journalArticle

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