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Unpublished Paper
A Belated Reply to Janet Yellen’s 1980 Critique of Post-Keynesian Economics
(2017)
  • Greg Hill
Abstract

Abstract: Thirty years before Janet Yellen became Chair of the U.S. Federal Reserve, she wrote a blistering polemic entitled “On Keynesian Economics and the Economics of the Post-Keynesians” (1980).  Ms Yellen criticized the Post-Keynesian theory of output and income distribution, vigorously defended the neoclassical synthesis, and extolled the virtues of the “standard Keynesian IS-LM model.”  In this belated reply, I respond to Yellen’s criticisms of Post-Keynesian economics, expose some flaws in her own distinctive version of the IS-LM model, and outline a few implications of Ms Yellen’s ironic epiphany, “A Minsky Meltdown: Lessons for Central Bankers” (2009), for contemporary debates in macroeconomics.
 

Keywords
  • Janet Yellen,
  • Hyman Minsky,
  • Neoclassical Synthesis,
  • IS-LM,
  • Post Keynesian
Publication Date
2017
Citation Information
Greg Hill. "A Belated Reply to Janet Yellen’s 1980 Critique of Post-Keynesian Economics" (2017)
Available at: http://works.bepress.com/greg_hill/7/