Classical Macroeconomics

The Great Depression and Keynes's definition of economic concepts made it difficult for modern economists to appreciate the classical insights. This book clarifies the classical explanations to resolve the continuing disputes.
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 Keynes's changed definition of economic concepts, aided by Eugen Bohm-Bawerk, have made it difficult for modern economists to fully appreciate the classical insights. This book clarifies the classical explanations to resolve the continuing theoretical and policy disputes. Key chapters include: on the definition of money; Keynes's misinterpretation of the classical theory of interest; the classical theory of growth and Keynes's paradox of thrift; and the mythology of the Keynesian multiplier.