Category Archives: aggregate demand

HAYEK AND THE CLASSICAL ECONOMISTS WERE RIGHT

The demand for output is not a demand for labor. ht Instapundit.

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FALKENSTEIN ON MACROECONOMICS & THE GENIUSES AT MIT

Here. Hayek’s early work on business cycles focused on misalignments in the structure of production. Alas, this was basically impossible to formalize. Keyenes’s model, meanwhile, was adopted into the Hansen-Hicks synthesis that looked a lot like the simple Supply/Demand equations … Continue reading

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ARNOLD KLING — HAYEKIAN OF THE DAY

Recalculation thinking vs AS-AD thinking. Sort of like the difference between adaptation thinking at the margin in Darwinian biology versus Platonic / Aristotelian thinking about biological kinds. Kling misses the fact that one kind of thinking provides a satisfying naturalistic/non-magical … Continue reading

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