Classical Macroeconomics: Some Modern Variations and Distortions (Routledge Studies in the History of Economics)

John Maynard Keynes failed to correctly interpret classic economic concepts, and dismissed the classical explanations and conclusions as being irrelevant to the world in which we live. The trauma of the Great Depression and Keynes's changed definition of economic concepts, aided by Eugen Böhm-Bawerk, have made it difficult for modern economists to fully appreciate the classical insights.

This outstanding book clarifies the classical explanations to resolve the continuing theoretical and policy disputes. Key chapters include:

• On the Definition of Money
• Keynes's Misinterpretation of the Classical Theory of Interest
• The Classical Theory of Growth and Keynes's Paradox of Thrift
• The Mythology of the Keynesian Multiplier

This unique book demonstrates that it is Keynes's understanding of some fundamental classical economic concepts which is at fault, and extends its analysis to other modern contributions in macroeconomics.

Professor James Ahiakpor teaches economics at the California State University, Hayward, and was Department chair, 1994-2000. His restatements of classical macroeconomics have appeared in the History of Political Economy, Southern Economic Journal, Journal of the History of Economic Thought, American Journal of Economics and Sociology and Indepedent Review. He contributed to and edited Keynes and the Classics Reconsidered (1998)