Keynesian Theory and the Aggregate-Supply/Aggregate-Demand Framework: A Defense

33 Pages Posted: 20 Jul 1998

See all articles by Peter Skott

Peter Skott

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics; Aarhus University - Department of Economics

Date Written: March 1996

Abstract

This paper defends the Aggregate-Supply/Aggregate-Demand framework against recent criticisms by Barro and others. Using four models - a neoclassical-synthesis Keynesian, a monetarist mark I, a rational expectations/new classical, and a Kaleckian/post-Keynesian - based on this framework, it is shown that it provides an internally-consistent and potentially useful teaching tool, that Keynesian versions of it do follow some of Keynes's ideas, that a Kaleckian/post-Keynesian version is consistent with empirical data, and that the criticisms by Barro and others are unwarranted.

JEL Classification: E10

Suggested Citation

Skott, Peter, Keynesian Theory and the Aggregate-Supply/Aggregate-Demand Framework: A Defense (March 1996). Available at SSRN: https://ssrn.com/abstract=75888 or http://dx.doi.org/10.2139/ssrn.75888

Peter Skott (Contact Author)

University of Massachusetts at Amherst - College of Social and Behavioral Sciences - Department of Economics ( email )

Amherst, MA 01003
United States

Aarhus University - Department of Economics ( email )

University Park
DK-8000 Aarhus C
Denmark
+45 8942 1133 (Phone)
+45 8613 6334 (Fax)

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