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Globalization has been impressive, but it has not proceeded far enough to make Keynesian analysis irrelevant.
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The theory behind Hof's promotion would make Keynesians proud.
With their Keynesian analysis, the Congressional Budget Office and others have exaggerated the effects of the "fiscal cliff" on the labor market and the economy.
In a process termed "the neoclassical synthesis", they combined Keynesian analysis with neoclassical economics to produce Neo-Keynesian economics, which came to dominate mainstream macroeconomic thought for the next 40 years.
I continue to be impressed by the unwillingness of many people to admit that maybe basic Keynesian analysis has something to it, even after three years when this analysis has repeatedly made correct predictions in extreme conditions — while other approaches have failed dismally, and cost those who believed in them lots of money.
But the underlying view here seems to be that Keynesian analysis predicted no recovery at all.
Anti-Keynesians assured us that budget deficits would send interest rates soaring; Keynesian analysis said they'd stay low as long as the economy remained far from full employment.
And the giggles and whispers thing — in which anything resembling non-microfounded Keynesian analysis was the subject of automatic ridicule — is already, I think, over.
A number of people who attacked Keynesian analysis vigorously seem to be in the process of backing off, which is good.
It is that Keynesian analysis has worked in this crisis, and those who refused to believe it have lost money as well as credibility.
Mr. Samuelson's resulting "synthesis" amounted to the notion that economists could use the neoclassical apparatus to analyze economies operating near full employment, but switch over to Keynesian analysis when the economy turned sour.
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CEO of Professional Science Editing for Scientists @ prosciediting.com