Introduction: what’s wrong with Keynesian economic theory?
I was in the process of writing an introduction to a book which I like to call my Anti-Keynesian Reader, but whose official title is Keynesian Economic Theory and its Critics. It is a compendium of all of the major critics of Keynesian economics written since the publication of The General Theory in 1936. In writing the introduction to this other volume, it became obvious that no one had ever written an all-encompassing critique of Keynesian economic theory from a classical pre-Keynesian perspective. This was because when the General Theory was published, although there were many classical economists, no one at the time truly understood what the General Theory was about. Now that we do understand what the General Theory is about, there are no classical economists left to explain from a pre-Keynesian perspective what is wrong with Keynesian macro. What else I learned was how few economists there are today who are actively anti-Keynesian. The entire literature since 1936 devoted to explaining what is wrong with Keynesian theory would hardly cover a single library shelf, and this would include both books and articles. Those of us writing critiques of Keynesian economics today are part of a very small cohort of economists.