Re: Re: Re: Query on teminology, was Re: . .

[michael@xxxxxxxxxxxxxxxxx]

This vision of the synthesis that you attribute to Samuelson is very clear
in Keynes' General Theory, except of the concern about inflation, which is
not in the General Theory, but does come later in Keynes.

I thought that Brad expressed this same idea clearly while denouncing
Nestor.

 >
> 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
>
>


--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael@xxxxxxxxxxxxxxxxx