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End of the Era of Keynes?

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05/08/2009L. Albert Hahn

A famous Norwegian dramatist has said: a theory lasts for thirty years. If this is true, then the year 1966 would be not only the thirtieth year since the birth of Keynes' General Theory of Employment, Interest and Money, but also the year of its death. It could then be shown that what is generally understood by "Keynesianism" does not involve a change in the evolutionary trend of economic doctrines, especially of monetary theories. Doctrinally, "Keynesianism" would have to be regarded merely as a recent, one-way swing of the pendulum such as the world has often experienced before this time in the direction of distinct overvaluation of the possibilities and effects of monetary manipulations and alterations.

Author:

L. Albert Hahn

L. Albert Hahn was one of the most highly regarded economists and bankers in Germany before the war but he was unknown in the United States until the 1949 translation of The Economics of Illusion, his frontal attack on the Keynesian system.

References

Kyklos, Vol. XX, 1967, pp. 270-286, translated by W.E. Kuhn.

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