Keynes and The Cambridge Economists: Revolution and Paradigm Shift

1. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

2. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Contents: Three Parts (called Books) • Preface • Book One - Keynes’s Unaccomplished Revolution (the Federico Caffè Lectures) I A decision to break with orthodoxy II The ‘revolution’ after Keynes • Book Two - The Cambridge School of Keynesian Economics Prelude III Richard F. Kahn (Co-author of The General Theory?) IV Joan V. Robinson (The woman who missed the Nobel Prize for Economics) V Nicholas Kaldor (Growth, income distribution, technical progress) VI Piero Sraffa (The critical mind) Interlude VII Richard M. Goodwin (The missed Keynes-Shumpeter connection) Postlude • Book Three - Towards a “production paradigm” for an expanding economy VIII Beyond neoclassical economics IX The stage of pure economic theory X The stage of institutional investigation XI Back to the future of the Keynesian revolution • Indexes

3. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution Chapter I A decision to break with orthodoxy II The “revolution” after Keynes • Book Two - The Cambridge School of Keynesian Economics • Book Three - Towards a production paradigm for an expanding economy

4. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution I A decision to brake with orthodoxy Chapter II • The “revolution” after Keynes • Book Two - The Cambridge School of Keynesian Economics • Book Three - Towards a production paradigm for an expanding economy

5. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics • Book Three - Towards a production paradigm for an expanding economy

6. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians The pupils of the first hour Prelude Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics • Book Three - Towards a production paradigm for an expanding economy

7. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book Two - chapter III • Richard F. Kahn (1905-1989) co-author of The general Theory?

8. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book Two - chapter IV • Joan Robinson (1903-1983) The woman who missed the Nobel Prize for Economics

9. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book Two - chapterV • Nicholas Kaldor (1908-1986) Growth, income distribution, technical progress Prof. Nicholas Kaldor

10. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book Two -chapter VI The critical mind • Piero Sraffa (1898 – 1983)

11. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Unwise behaviour Interlude Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics • Book Three - Towards a production paradigm for an expanding economy

12. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book Two - chapter VII - the missed Keynes-Shumpeter connection Richard Murphey Goodwin(1913-1996) Richard Stone (1913 – 1991)

13. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics Postlude:Fighting for Independence • Reality (and not simply abstract rationality) as the starting point of economic theory • Economic logic with internal consistency (and not only formal rigour) • Malthus and the Classics (not Walras and the Marginalists) as the major inspiring source in the history of economic thought • Non-ergodic (in place of stationary, timeless) economic systems • Causality vs. interdependence • Macroeconomics before microeconomics • Disequilibrium and instability (not equilibrium) as the normal state of the industrial economies • Necessity of finding an appropriate analytical framework for dealing with technical change and economic growth • A strong, deeply felt social concern • Book Three - Towards a production paradigm for an expanding economy

14. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics • Book Three - Toward a production paradigm for an expanding economy VIIIBeyond neoclassical economics IX The stage of pure economic theory X The stage of institutional investigation XI Back to the future of the “Keynesian revolution”

15. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics • Book Three-Toward a production paradigm for an expanding economy Chapter VIII Beyond neoclassical economics IX The stage of pure economic theory X The stage of institutional investigation XI Back to the future of the “Keynesian revolution”

16. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics • Book Three-Toward a production paradigm for an expanding economy VII Beyond neoclassical economics Chapter IX The stage of pure economic theory X The stage of institutional investigation XI Back to the future of the “Keynesian revolution”

17. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Chapter X The stage of institutional investigation Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics • Book Three - Toward a production paradigm for an expanding economy VII Beyond neoclassical economics IX The stage of pure economic theory XI Back to the future of the “Keynesian revolution”

18. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians Keynes and the Cambridge Keynesians • Book One - Keynes unaccomplished revolution • Book Two - The Cambridge School of Keynesian Economics • Book Three - Toward a production paradigm for an expanding economy VII Beyond neoclassical economics IX The stage of pure economic theory X The stage of institutional investigation Chapter XI Back to the future of the “Keynesian revolution”