chapter  8
Broadening the theory of aggregate supply: a “New Critical” proposal
Pages 18

Introductory pers pectives The tension between the ideological and practical functions of economic theory reaches fever pitch when it appears on the terrain of macroeconomic (fiscal and monetary) policy. The core problem is the deeply ambivalent attitude of capitalist ruling classes toward the state, and this ambivalence goes way back into the earliest periods of capitalist development. It acquires its full-blown modern character in the post-liberal era in which self-propelled capital accumulation in the presence of a passive state has become chronically problematic. State economic policy therefore becomes a central requirement for more-or-less smooth reproduction, and a constant bone of contention.