Keynes and the Modern Economy: Analogies, Differences, and Contradictions

Authors : Onur ÖZDEMİR

Pages : 141-157

View : 18 | Download : 8

Publication Date : 2020-10-01

Article Type : Research Paper

Abstract :This paper investigates the major tools of the orthodox Keynesian approach and the critical discussion for that approach based on mainstream assumptions covering both classical dichotomy and the neoclassical thoughts. While the study reveals the difference of orthodox Keynesian arguments from the others in the presence of the importance of uncertainty and expectations, the counter-arguments are formed by way of examining three different assumptions: insert ignore into journalissuearticles values(i); the Lucas critique, insert ignore into journalissuearticles values(ii); the new Keynesian approach and the small menu cost theory, and insert ignore into journalissuearticles values(iii); the heterodox reflections. Moreover, it briefly explains the core elements of Keynesian investment theory concerning the components of financial markets. However, both of these factors also consider some major contradictory factors to reveal the difference of orthodox Keynesian assumptions from the mainstream theoretical agenda of the neoclassical approach.
Keywords : Keynesian Economics, Classical Dichotomy, Financial, Financial Markets, Investment Theory, Neoclassical Approach

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