HOMEPAGE on this website for STUDY GROUP FOR RE-READING KEYNES. This website will be used to organize and store lectures on Re-Reading Keynes, and associated materials, in a systematic way. These lectures will also be posted on: Facebook Page and WEA Pedagogy Blog. Join either the Blog, OR the Facebook group, to get regular updates.
Lesson 1:
I am planning a sequence of lectures on re-reading Keynes, where I will try to go through the General Theory. This first lecture explains my motivations for re-reading Keynes. As always, my primary motive is self-education; this will force me to go through the book again -- I first read it in my first year graduate course on Macroeconomics at Stanford in 1975, when our teacher Duncan Foley was having doubts about modern macro theories, and decided to go back to the original sources. At the time, I could not understand it at all, and resorted to secondary sources, mainly Leijonhufvud, to make sense of it. Secondarily, i hope to be able to summarize Keynes' insights to make them relevant and useful to a contemporary audience. Thirdly, there are many experts, especially Paul Davidson, on the RWER blog, who will be able to prevent me from making serious mistakes in interpretation.
Reasons for Studying Keynes
“The heart has its reasons of which reason knows nothing.” Blaise Pascal
In line with the objectives of the WEA Pedagogy Blog, I am initiating a study group with the aim of [re-]reading Keynes’ classic The General Theory of Employment, Interest and Money. There are many reasons why I think this is a worthwhile enterprise. I hope to make weekly posts summarizing various aspects of the book, as we slog through the work, which can be difficult going in some parts. At the very least, this will force me to re-read Keynes, something I have been meaning to do for a long time. In this first post, I would like to explain my motivation in doing this exercise.
All of the above provide reasons why a re-reading of Keynes promises to reveal some new insights into our contemporary economic problems. However, eighty years of experience following the publication of Keynes book in 1936 allows us to provide some additional insights not present in Keynes work. While there are many dimensions in which we hope to enrich the analysis of Keynes, our main contributions will be on the methodological front. It is my hope to use Keynes and Keynesian theory as a test-bed for "The Methodology of Polanyi's Great Transformation" -- in this paper, I describe how the methodology used by Polanyi is fundamentally and radically different from conventional economic methodology. These new methodological principles will be illustrated later, in context of applications. A very brief sketch of some of main ideas is given below, just as a starting point.
Further evidence for the failure of methodology is furnished by the large numbers of comments by leading economists about the bankruptcy of modern economic theory. For instance, Romer said that macroeconomics has been going backwards for the past three decades. Loss of knowledge, and failure of cumulation of experience is indicative of serious methodological flaws. Economists never succeeded in escaping from the "habitual modes of thought and expression" which Keynes struggled with; with passage of time, they lapsed back into the same pre-Keynesian errors. My own study of The Methodology of Polanyi reveals several methodological principles which are radically different from those currently in use in modern economic theory. I will mention just one important principle here.
In this re-reading of Keynes, we will attempt to understand Keynesian theories within their historical context. The mathematical/scientific school won the battle of methodologies against the German historical school at the end of the 19th century. As in Ecclesiastes, "The race is not to the swift or the battle to the strong." The wrong side won the battle, which led to loss of knowledge in the economics profession. We cannot put economics back on track without re-absorbing the lessons of history and historical context.
Continue to Lesson 2: Methodology Adopted for Re-Reading Keynes
Economic theory creates the world we live in & the rules we live by — Intro & context of my article on creating challengers and change for radical curriculum change in economics.
Education of an Economist — Autobiographical note on my training in classical economics and how I came to reject it.
Methodology flaws, and how to repair them — Links to articles detailing flaws in contemporary methodology, and others describing the proposed alternative Polanyi methodology
P1: Reading Keynes — Same post as above on LinkedIn. p1=post 1
PREVIOUS homepage for Keynes Study Group — Previous Website: This has links to additional materials, not organized. More organized presentation to be given in this new website
URDU: Keynes in Historical Context — 27m Video Lecture on concepts covered in L1-L4 of re-reading Keynes
WEA Pedagogy Post -- same material — WEA Pedagogy Link; also has comments posted on the blog.