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Unformatted text preview: the theory that replaced it: that recessions and depressions were caused by general gluts or demand deficiency. What he greatly has problems with in Keynes’ theory is not even the lack of acknowledgement for what Say’s Law truly states, that misalignment of the structure of supply and demand create slumps, but especially that the term demand deficiency puts the fault on consumption. Over-production at least faults the producers who are also guilty under Say’s Law, though of making the wrong proportion of goods rather than simply too many goods. He defines Wilhelm Röpke’s macroeconomic book meant to explain the Great Depression, Crises and Cycles , as the endpoint of classical macroeconomic theory, as it was the last book on macroeconomic theory written without the influence of Keynes....
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This document was uploaded on 10/27/2011 for the course MAP CA102 at NYU.
- Fall '10