milton friedman was the economics professor who brought the keynesian ideas across the atlantic to the us.
milton friedman was the economics professor who brought the keynesian ideas across the atlantic to the us.
who was the economics professor who brought the keynesian ideas across the atlantic to the us?
milton friedman
the keynesian revolution was associated with the rise of modern liberalism in the west during the post-war period. keynesian ideas became so popular that some scholars point to keynes as representing the ideals of modern liberalism, as adam smith represented the ideals of classical liberalism. after the war, winston churchill attempted to check the rise of keynesian policy-making in the united kingdom and used rhetoric critical of the mixed economy in his 1945 election campaign. despite his popularity as a war hero, churchill suffered a landslide defeat to clement attlee whose government's economic policy continued to be influenced by keynes's ideas.
john maynard keynes
in the 1990s, the "uncoupling" of money supply and inflation caused an increasing questioning of the original form of monetarism. the repeated failures of "big bang" marketization in the former soviet bloc have encouraged the recent revival in keynesian ideas, with particular emphasis on giving the keynesian macroeconomic analysis theoretically sound foundations in microeconomics. these theories have been called new keynesian economics. the heart of the new keynesian view rests on microeconomic models that indicate that nominal wages and prices are "sticky", i.e. do not change easily or quickly with changes in supply and demand, so that quantity adjustment prevails. according to economist paul krugman, this "works beautifully in practice but very badly in theory". this integration is further spurred by work of other economists which questions rational decision-making in a perfect information environment as a necessity for micro-economic theory. imperfect decision making such as that investigated by joseph stiglitz underlines the importance of management of risk in the economy.
neo-keynesian economics