Steven Kates, Say's Law and the Keynesian Revolution

Steven Kates, Say's Law and the Keynesian Revolution - the...

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John Hawkins Policy Ideas in the History of Economic Thought Mario Rizzo October 18, 2010 Steven Kates: Say’s Law and the Keynesian Revolution Steven Kates’ writing is largely about trying to discredit the Keynesian interpretation of Say’s Law and to refute it with other classical economists interpretations of the very same law. As the title goes, it is an attempt to show how the Keynesian Revolution was where macroeconomics took a wrong step of which it has not yet self- corrected. He begins with Keynes interpretation, that classical economists didn’t allow for recessions or sub-full-employment in their models and theories, which Kates believes to be ridiculous because Say’s Law played a fundamental role in the classical theory of the business cycle. What is ironic to Kates is that the purpose of Say’s Law was to discredit
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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 Says 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 Says Law, though of making the wrong proportion of goods rather than simply too many goods. He defines Wilhelm Rpkes 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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Steven Kates, Say's Law and the Keynesian Revolution - the...

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