ABSTRACT
The Great Depression in the 1930s finally resulted in the defeat of the neoclassical theory as the Keynesian Revolution overtook the scene of macroeconomics. That is to say, the economic crisis of the 1930s the Great Depression was severe enough to trigger a revolution in macroeconomics. Macroeconomists got a new view on how to conduct fiscal policy. The modern macroeconomic mainstream is now in general a story about the new neoclassical synthesis (NNS) with DSGE modelling as a base-line model. In accordance with the views given by Paul Davidson in many of his writings, the behaviour of the individual household or firm has never been characterized as identical to the behaviour of the rational economic man. The non-ergodic view on economics is, regrettably, only accepted by the post Keynesian understanding, as non-mainstreamers have hitherto had no influence at all on the modern macroeconomic NNS.
