Classical Macroeconomics : Some Modern Variations and Distortions

John Maynard Keynes failed to correctly interpret classic economic concepts, and dismissed the classical explanations and conclusions as being irrelevant to the world in which we live. The trauma of the Great Depression and Keyness changed definition of economic concepts, aided by Eugen Bِhm-Bawerk, have made it difficult for modern economists to fully appreciate the classical insights.

This outstanding book clarifies the classical explanations to resolve the continuing theoretical and policy disputes. Key chapters include:

• On the Definition of Money
• Keyness Misinterpretation of the Classical Theory of Interest
• The Classical Theory of Growth and Keyness Paradox of Thrift
• The Mythology of the Keynesian Multiplier

This unique book demonstrates that it is Keyness understanding of some fundamental classical economic concepts which is at fault, and extends its analysis to other modern contributions in macroeconomics.