keynesian Crisis: New Cambridge and the Attack on Short-Term Demand Management
The ideas that were to become crystallised in the econometric model of the Cambridge Economic Policy Group took shape during the economic boom of 1972-3 and came to maturity during the recession that followed. In order to understand the Policy Group's model and the way it was used, we have to trace the development of the thinking that lay behind it during this formative period. The reason for this is that the development of the ideas that went into the model is more important than the model itself. There are two senses in which this is true.