ABSTRACT
This chapter concludes my outline of Modigliani’s main contributions to economics from the 1930s to 1970s. It is argued that not only did Samuelson call Modigliani at MIT to have a monetarist Keynesian economist engaged against monetarists’ claims but that Modigliani’s close identification with American Keynesianism took shape with his arrival at MIT. Looking back at his previous research agenda, it appears that from his 1944 article to the subsequent one in 1963 concerning Keynesian and classical economics, his research moved in directions other than standard Keynesian. The chapter especially reconstructs Modigliani’s collaboration with the Federal Reserve Board since the mid-1960s to build, with Albert Ando and a number of academic scholars and economists from the Board, a large-scale macroeconometric model for the U.S. economy (1966–1970), which Blanchard defines as the “apotheosis of the neoclassical synthesis”.
