author={Brian Snowdon},
  journal={Macroeconomic Dynamics},
  pages={117 - 145}
  • B. Snowdon
  • Published 30 January 2004
  • Economics
  • Macroeconomic Dynamics
Axel Leijonhufvud made an enormous impact on macroeconomics in the late 1960s with the publication of his book On Keynesian Economics and the Economics of Keynes: A Study of Monetary Economics (1968). In this famous book, Leijonhufvud argued that the standard neoclassical synthesis (Hicks–Hansen IS-LM) interpretation of the General Theory totally misunderstood and misinterpreted Keynes. However, during the 1970's, interest in Keynes and Keynesian models waned as new classical equilibrium models… 
Leijonhufvud on New Keynesian Economics and the economics of Keynes
The theme that Axel Leijonhufvud has extracted from the economics of Keynes is the potential for failures in the intertemporal coordination of activities in complex market systems. In his
On Keynesian Economics and the Economics of Keynes after fifty years
Abstract Axel Leijonhufvud’s On Keynesian Economics and the Economics of Keynes (1968) definitely belongs to the category of “classic” books. Its message—decentralised economies are prone to large
Price stability versus full employment : the Phillips curve dilemma reconsidered
This dissertation focuses on different interpretations of the Phillips curve particularly from the end of the 1950s to the beginning of the 1970s. In the 1950s and 1960s the Phillips curve was mainly
The paper investigates the rise and fall of the disequilibrium approach in macroeconomics between the mid 1960s and the late 1970s. During that period macroeconomists became attracted to the
Brunner and Leijonhufvud: friends or foes?
  • Pierrick Clerc
  • Economics
    The European Journal of the History of Economic Thought
  • 2019
Abstract Karl Brunner and Axel Leijonhufvud constantly pointed out the prominence of imperfect information in macroeconomic analysis. This paper argues that, despite strong oppositions related to
Not Going Away? Microfoundations in the Making of a New Consensus in Macroeconomics
Macroeconomics, or the science of fluctuations in aggregate activity, has always been portrayed as a field composed of competing schools of thought and in a somewhat recurrent state of disarray.
The wage–employment relationship in Modigliani's 1944 article
Abstract Modigliani's 1944 “Econometrica” article is considered one of the most important efforts to reconcile Keynes with classical economic thinking through the wage rigidity hypothesis. The paper
Modigliani ' s 1944 wage rigidity assumption and the Neoclassical Synthesis *
Modigliani's 1944 "Econometrica" article is considered one of the most important efforts to reconcile Keynes with classical economic thinking through the wage rigidity hypothesis. The aim of this
Inflation: Economists and Economic Cultures in Brazil and Argentina
In the middle of fourteenth century in Western Europe, a turning point occurred in the modern inquiry into the nature of money. While political unification of the states made monetary standardization
Modigliani's 1944 Wage Rigidity Assumption and the Construction of the Neoclassical Synthesis
Modigliani's 1944 "Econometrica" article is considered one of the most important efforts to reconcile Keynes with classical economic thinking. The aim of this paper is to reconstruct the genesis of


What do we know about Macroeconomics that Fisher and Wicksell did not
The answer to the question in the title is: A lot. In this essay, I argue that the history of macroeconomics during the 20th century can be divided in three epochs: Pre 1940. A period of exploration,
Macroeconomics : a survey of research strategies
Part I. Keynesian Macroeconomics: Foundations and Prospects: John Hicks: The unification of macroeconomics Axel Leijonhufvud: Keynesian economics: Past confusions, future prospects Joseph E.
Studies in business-cycle theory
An article in Fortune a few years ago identified Robert Lucas as "the intellectual leader of the rational-expectations school." An academic colleague has called Lucas "the dominant figure in American
The Return of Depression Economics
Today, the tragedy of the Great Depression looks gratuitous and unnecessary: Our economists and policy makers simply have gained too much experience since then. It could never happen again. Or could
Effective Demand Failures
Part I argues that the central issue in macroeconomic theory today again concerns, as it did in the 1930's, the self-regulatory capabilities of market systems. Our failure to make better progress
A Plain Man’s Guide to Kaldor’s Growth Laws
In the course of his Inaugural Lecture at Cambridge in 1966 on the causes of the U.K’s slow growth rate, Kaldor (1966) presented a series of “laws” to account, for growth rate differences between
A Theoretical Framework for Monetary Analysis
Every empirical study rests on a theoretical framework, on a set of tentative hypotheses that the evidence is designed to test or to adumbrate. It may help the reader of the series of monographs on
The Collected Papers of Franco Modigliani
Articles and essays by the late Nobel Prize-winning economist on the life-cycle hypothesis, unemployment and monetary policy in the European Union, and other topics. This volume of papers, articles,
Comment: Is There a Meaningful Trade-off between Inflation and Unemployment?
Most highly influential works in economics are either pure deduction or a close blend of deduction and more or less casual or systematic empiricism. But we have also a few pieces of almost pure
Behavioral Macroeconomics and Macroeconomic Behavior
Think about Richard Scarry’s Cars and Trucks and Things That Go. Think about what that book would have looked like in sequential decades of the last century had Richard Scarry been alive in each of