ABSTRACT
The reaction to Keynes’ General Theory was mixed, to say the least. Frank Knight, a leading economist at the University of Chicago, wrote a review of the book in which he stated: It claims to be itself a theory of stable equilibrium, like the conventional systems in being free from cycles, but different in that instead of full employment a large amount of unemployment, involuntary and not due to friction, is characteristic of the equilibrium position. Economics textbooks as a rule avoid openly discussing different schools of thought. Controversies in macroeconomics are discussed in technical terms, and this book will do likewise. The overriding theme in Marxism is class struggle between the two social classes that are associated with the two primary factors of production, capital and labor. Marxists exist in universities in the United States, Japan, and Europe and in other places as well, but they are not influential in the field of macroeconomics in advanced, highly developed nations.
