ABSTRACT
In this article, “The Unification of Macro-Economics”. Hicks established a very tight link between Keynes and the Pre-Classics, Smith being the last man of this group. Keynes and Smith would have the same “method”, which does not make of the prices-mechanism the corner-stone of all economic problems. Both would also build macro-models of the same nature, in which the economy is viewed as a set of monetary aggregates, and in which the multiplier plays a central part. At first sight, Hicks’ parallel is a bit puzzling for two reasons at least. First, Smith is commonly considered as the founder of the classical school, more economics, because he would have been the first to focuse on the prices-mechanism. Second, Smith is generally regarded as a radical critic of mercantilists, while Keynes defended them. Nevertheless, Hicks’ ideas are very suggestive and can be developed in many directions.
