ABSTRACT
The special issue on Stagflation of the lntermountain Economic Review was, at once, depressing and heartening. Two of the most distinguished neo-Keynesian economists of the older generation implicitly declared their methods bankrupt; but the younger writers were having none of it. In the macro-world of neo-Keynesian income analysis there is no formal place for oil or wheat or meat. The short-run Keynesian model is merely tilted upwards with variables inserted for the rate of working force and average productivity increase. Professor Abba P. Lerner's criticism that a coherent, general disaggregated theory which systematically takes into account growth, trends and cycles is "a flight not so much from Keynesianism as from economics," is the oddest statement in his reply. One would have thought that Professor Lerner would take more seriously the brutal fact that, for good or ill, food, energy, raw material and environmental policies are now so greatly influenced by governments.
