Keynes, Hobson, Marx
Keywords:economic crisis, uncertainty, institutional economics, under-consumption
The work compares the relative strenghts of the Keynesian tradition, in understanding the current crisis, with those of two non-Keynesian traditions represented by Hobson and Marx. Fundamental to Keynes are the concepts of uncertainty and under-employment equilibrium. From Hobson we get an understanding of how inequality of wealth and income makes crisis more likely and recovery more difficult. From Marx we get an explanation of why inequality of wealth and income is inherent in an unmodified capitalist system. We need to put together the three accounts in order to achieve a fuller understanding of the events through which we have recently been living. Text of a speech given at the Post-Keynesian conference ‘Reclaiming the Keynesian Revolution’ in Kansas City.
JEL Codes: H12, B25, B52
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