Clower's About-Face Regarding the Keynesian Revolutionn

Romain Plassard
2015 Social Science Research Network  
Robert W. Clower's article "The Keynesian Counter-Revolution: A Theoretical Appraisal" (1965) deeply influenced the course of Keynesian macroeconomics by contributing to the transition from IS/LM macroeconomics to fix-price theories. Despite this influence, no scholar proposed to explain its origins, with the notable exception of Roger E. Backhouse and Mauro Boianovsky (2013) . They explained that the 1965 piece was the result of an independent research program rooted in the works of Clower
more » ... ng the 1950s. My paper aims to offer an alternative explanation. It is synthesized in the metaphor of an about-face to stress that a theoretical break is at the origin of this contribution. This break, initiated in the early 1960s, is characterized by a double change in perspective (individual equilibrium vs. individual disequilibrium, and compatibility vs. incompatibility between Keynesian and Walrasian theories). The intellectual context, particularly Don Patinkin (1956; , will be invoked to trace the roots of this about-face. Consequently, rather than independency and linearity, I argue that dependency and non-linearity are the two salient features of Clower's intellectual path.
doi:10.2139/ssrn.2675245 fatcat:exxthvcpercj5aavqzofplzj6i