Mainstream Macroeconomics: A ‘Keynesian’ Revival?

Abstract

This paper examines the nature of the ‘convergence of vision’ that is said to have existed within mainstream macroeconomics prior to the ‘global economic recession’, and which has been the subject of strong criticism in recent times from Nobel Laureates such as Krugman, Akerlof and Solow. The nature of a proposed ‘Keynesian revival’ is also examined, and it is concluded that while the required changes in theoretical content and methodological perspective are substantial, the most significant obstacle to be overcome is to be found in what Keynes had referred to as the ‘metaphysical principles' upon which laissez faire has been founded.