Re: Re: Query on teminology, was Re: . . .labor/gender issues/corporate...

[Jim Devine <jdevine@xxxxxxxxxxxxxxx>]

Peter wrote:
> The so-called neoclassical synthesis of the
> post WWII era was really two different bodies of theory laid
> side-by-side.

As I understood the "synthesis," it involved a faith that the government
would use fiscal policy to maintain full employment (this was an era before
the rentiers took power, to steer the economy via the Fed). Given that,
microeconomic supply & demand would work find. I think this "synthesis"
comes from Paul Samuelson.

The new Classicals reversed this: microeconomic supply & demand maintained
full employment, while the macro level would work fine, as long as the Fed
kept the money supply from growing too quickly (which would cause inflation).

Jim Devine jdevine@xxxxxxx & http://bellarmine.lmu.edu/~JDevine