ABSTRACT
Economic theories of stabilization policy have been dominated by Keynes’s General Theory since its publication in 1936. This is not to say that it was unambiguous or accepted in its entirety, but the GT has supplied the framework of macroeconomic debate for seven decades. Keynes’s disciples ruled macroeconomic analysis into the 1960s, and although their authority was undermined by new ideas and events, their framework and often their specific models still take pride of place in textbooks and popular discussions. There is disagreement about what Keynes meant, and who are the true disciples, but I use ‘Keynesian’ for those who explain unemployment as a consequence of market imperfections and advocate remedies in the form of government intervention. Whether Keynesians adhere to the letter or spirit of the GT is another matter.
