ABSTRACT
This chapter reviews theKeynesian ideas on short-runmacroeconomics. To start, thematerial on the Keynesian paradigm in Chapter 1 should be reviewed. That presentation argued that the Keynesian paradigm was the study of the pathology of the macroeconomy: it focuses on the causes, implications and policy prescriptions for the deviations of the economy from its Walrasian general equilibrium position and holds that the pursuit of appropriate monetary and fiscal policies can shorten the extent and/or duration of the deviation. Since there can be
many causes of such deviations, their appropriate study requires not one unified model but many, some of which will be variations on the same theme, but there could also be models that are incompatible with one another. As such, there is no one model that can lay claim to be the Keynesian model. This chapter provides a small sample of the diversity of Keynesian models.
