The Irreconcilable Inconsistencies of Neoclassical by John Weeks

By John Weeks

During this ebook it's argued that the lack of what's basically "macro" in Keynes is the results of a choice for a kind of equilibrium research that provides unqualified aid to the ideology of unfastened markets. in relation to Marx, his conception of exploitation and from this the tension on type fight, ended in a virtually entire overlook of his contribution to the research of the mixture call for and provide of commodities.

Reviews:

Whichever the reader's condition, Weeks's e-book is vital studying for the critic...Weeks essentially strips a fake technology all the way down to its logical basics and offers neoclassical economics for what it really is: the underlying educational justification for the activities of the world's dominant classes.

Wesley Marshal, independent Metropolitan college, Iztapalapa, Mexico

John Weeks has written a lucid, enticing and persuasive critique of orthodox macroeconomics. In doing so, he offers an immense counterpoint to the neoclassical viewpoint, to question not only its prescriptions but additionally its research. The booklet demonstrates that one of the most primary, certainly influential, propositions in orthodoxy are fallacies: that markets via themselves verify complete employment, or that inflation in all places is a financial phenomenon. In its close to obsessive challenge with the micro-theoretic foundations of macroeconomics, orthodoxy forgets that the total isn't like, if now not more than, the sum overall of the elements. For an realizing of the area round us, the writer argues, it's time for macroeconomics to come back to the taking into account Marx and Keynes. it is a important substitute textual content if you have questions or issues approximately mainstream macroeconomics in such a lot textbooks.

Deepak Nayyar, Professor of Economics, Jawaharlal Nehru collage, New Delhi, and exceptional college Professor of Economics, New tuition for Social learn, New York

Even after the worldwide monetary calamities tied to the Wall highway Crash and nice Recession of 2008-09, the view nonetheless prevails between either expert economists and policymakers that unfastened marketplace economies paintings most sensible. during this publication, Professor John Weeks powerfully demolishes neoclassical macroeconomic concept, the highbrow origin for all such free-market celebrations. Weeks additionally is going additional, via clearing the floor for us to imagine in clean methods a couple of macroeconomic framework able to offering complete employment, strong monetary markets and a sustainable environment.

Robert Pollin, Professor of Economics and Co-Director, Political Economy
Research Institute (PERI), college of Massachusetts-Amherst

John Weeks has written a passionate indictment of mainstream macroeconomics. His viewers is sceptical scholars (and their academics) who're wondered in regards to the loss of touch among what their textbooks and "learned" journals say approximately how issues take place and what will be performed approximately them, at the one hand and what they notice within the day by day happenings of the realm during which they stay, at the different. Weeks has absorbed the strategy and info of the mainstream literature, decreased it to its necessities and tested its inner common sense, which he usually unearths both in need of, or so depending on designated assumptions for which there's little financial justification as to be of constrained applicability, or none in any respect. He contrasts those findings with the extra suitable method of be present in the writings of Marx, Keynes, and Weeks' personal institutionalist lecturers of in the past. fake Paradigm is the easiest kind of textbook - transparent, sincere, demanding and relevant.

G. C. Harcourt, tuition of Economics, collage of recent South Wales

My middle is going out to these teenagers who, spurred on by means of the monetary drawback, embark on a path in economics. continuously they confront an orthodoxy taught through a occupation that did not are expecting the predicament, did not clarify it and didn't provide treatments. certainly the economics occupation, with only a few amazing exceptions has stood aloof, disdaining to provide society, and specifically youth, an knowing of, and a manner out of the predicament. now not so John Weeks. This e-book applies educational rigour to shed mild and knowing. it really is for a person with a sceptical brain desirous to comprehend and make feel of today's monetary mayhem - and willing to problem the discredited economics that prompted the challenge of August 2007 - a concern that continues to be ongoing.
Ann Pettifor, government Director of Advocacy International

With highbrow rigour and keenness for human growth, this publication exhibits how a lot the dominant fiscal method relies on fake premises, defective good judgment and ideological blindness. much more very important than its sharp and profound criticisms of all points of orthodox macroeconomics is its skill to advance the college for severe mirrored image within the reader. it's a must-read for everybody who's attracted to knowing what's taking place on the planet economic system today.
Ha-Joon Chang, collage of Cambridge

John Weeks's publication grants what it has promised: an intensive critique of neoclassical idea and the synthesis versions through undermining the contradictory propositions and implicit assumptions and turning those opposed to themselves.

Jelle Versieren, college of Antwerp

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Extra info for The Irreconcilable Inconsistencies of Neoclassical Macroeconomics: A False Paradigm (Routledge Frontiers of Political Economy)

Example text

It presents the social process of production, exchange and distribution as a phenomenon of markets to which the role of government can be added at a later point. A critique of the political philosophy that produces such an extreme dichotomy of public and private lies beyond the scope of this book. It should be sufficient to make two points. No private production, exchange or distribution is possible without public intervention, at the minimum to guarantee contracts and private property. Second, in all but a few countries, the single largest provider of economic services is the public sector, the most obvious being the security services of the military and the police, for which there is only a small privately marketed counterpart.

Whether this is correct or not is an empirical question, and it is a useful working hypothesis. On the basis of this hypothesis, one can reformulate the multiplier process as described above. If the model is initially at less than full employment with no scarcities of complementary inputs, an increase in investment expenditure will result in falling inventories of investment commodities or a rise in production for order, inducing businesses to increase capacity utilization and hire more workers.

By breaking into the circuit at an arbitrary point, one can follow the process of circulation. In the circular flow the emphasis is on the income generated from production, rather than on production itself, though it is production that is the basis of the flow. The economic system is presented with two types of “agents”, households that sell services of various types, and businesses that purchase these services. Consumer commodities are destined for households, and investment commodities for business.

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