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Keynesianism/Tobin: Keynesianism tried to incorporate the findings by Keynes into neoclassical theory.
Problem: the neoclassical mainstream assumed that the price mechanism was in principle efficient and capable of ensuring a full employment equilibrium.
Solution: And in order to capture these short-term phenomena, Keynesian analysis was used, which was formalized and annexed to the neoclassical theory building. (1)
Other representatives of Keynesianism were Franco Modigliani (1918-2003) and James Tobin (1918-2002). At least as far as the economic policy guidelines were concerned, the Keynesians did not deviate from the recipes of "General Theory". Like Keynes, they advocated active economic stabilisation by the state - not only through anti-cyclical fiscal policy, but also through a corresponding monetary policy.
1. Cf. J. R. Hicks, Mr. Keynes and the „classics“; a suggested reinterpretation. Econometrica 5: 1937, S. 147-159._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. The note [Author1]Vs[Author2] or [Author]Vs[term] is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition.
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