History of Macro Doctrine The Commanding Heights

1
History of Macro Doctrine The Commanding Heights

• Keynes Stabilize an inherently unstable economy
  preserve liberal society
• Macro-policy, not planning
• Hayek as counterweight to Keynes?
• Macro-policy/welfare state the road to serfdom?
• WWII High tide of PLANNING hypercharged economy
  social consensus
• Austrian Methodology reject equilibrium
• Ceteris not paribus other things change
• Swedish school ? similarly disequilibrium
• Hayek / Myrdal 1974 Nobel Prize

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Schools of Economics

• LSE teach economic science and the wisdom of
  socialism (a, b, all of the above?)
• U. of Chicago endowed by J.D. Rockefeller
• Bastion of enterprise capitalism
• U. of Ilinois as counterweight
• MIT Paul Samuelson / Robert Solow
• Foundations of Economic Analysis
• Principles of Economics
• Teaching Keynesian Economics
• Lawrence Summers Keynesian Household

3
Chicago SchoolMilton Friedman The Counterweight
to Keynes

• Aversion to Keynes elitism
• Discredit activism MV PY vs. Y CIG
• Studies in the Quantity Theory of Money, 1956
• Cagan stable Md in times of hyperinflation
• A Theory of the Consumption Function, 1957
• A Monetary History of the United States, 1963
• The Great Contraction
• The Role of Monetary Policy, 1968

4
Carnegie Mellon A Chicago Satellite

• The Rational Expectations Revolution
• The Management Game HMMS
• John Muth, 1963
• Lucas Rapping Supply Curve
• Lucas Policy Ineffectiveness
• Prescott Kydland
• Real Business Cycles
• Time Inconsistency
• Aside of the DM Miracle
• Erhard or Goldsmith Dodge Colm?