Here’s what’s happening this week with our friends at the Auckland Uni Economics Group (why don’t you get along and join in: all real people are welcome!):
In 1876, understanding the doctrine we will discuss this week was called “the best test of a sound economist.”
Friedrich Hayek called it “a profound insight” yet, he said, it “remained for Keynes an incomprehensible absurdity.”
To most economists since Keynes, it seems little more than gobbledygook, but to Classical economists (highlighted below) it was the capstone of what might be called Classical Macroeconomics.
This Thursday we look how at the major “macroeconomic” questions were understood in the time of John Stuart Mill; a few of the profound changes that have affected “macro” theory since the publication of Keynes’s General Theory; and the crucial relationship between wages, capital and saving.
Consistent with the economic test above, it will be suggested that the position found across virtually the whole of “macroeconomics” today was seen by pre-Keynesian economists as a fallacy of the highest order.
Will you pass “the test”? Come along and find out …
Date: Thursday, 6 August.
Location: Case Room Two, Level Zero, Business School.
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