4 of 5 people found the following review helpful
review of the current economic affairs,
This review is from: Keynes: The Return of the Master (Paperback)This must be a good book. I've just finished this book. However, this is apparently not for a novice like me. I had much difficulty understanding this book. This book is not a biography about Keynes. There is no mention of his private life. Rather this book is a review of the current economic affairs by a scholar who adopts Keynesian approach. Especially important to understand this book is understanding uncertainty in Keynesian economics.
New classical economists introduced rational expectation by which concept all the government's efforts to increase aggregate demand ends up disrupting the economics which has a natural tendency of finding proper equilibrium. The author constantly criticises "Freshwater economics" for their Newtonian approach towards macroeconomic issues such as unemployment, savings and investment. For this part I don't understand clearly. Despite this the clear impression I get is that the assumption that the market always and naturally finds its own equilibrium for employment and investment looks like a fairy tale in the guise of social science. I always find unemployed friends and relatives while the new classical economists are always saying that they are unemployed voluntarily. The new classical economics must be a fairy tale as its narrative has no relevance to reality and its approach to the crisis in 2008 provided no prescription for people. They are quasi-scientists like communist were pseudo-scientists.
After reading this book I am still confused over macroeconomics. However, this book must be good for serious readers who want to understand the world we live in.