Social Sciences and History / Unit 15 SSH 1439 short lesson, about 20 seconds
Keynes and the Neoclassicals: The Short Run and the Long
Captions available
The idea
John Maynard Keynes names the perspective: aggregate demand causes recessions, sticky prices, the multiplier, and fiscal policy to fill the gap. Milton Friedman summed up the neoclassical answer in nineteen sixty-seven: a temporary tradeoff between inflation and unemployment, never a permanent one.
In practice
Hayek, in IPS, dissenting from planning.
Where people slip
Monetarism: Friedman's constant-money-growth rule.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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