Anti-Keynesian Views: Fiscal and Monetary Guidelines

Abstract

In this article, we will cover the main anti-Keynesian
views and macroeconomic systems that arose in the post Keynes
period as well as their fiscal and monetary policy guidelines. As is
known, the early Classical economists introduced a
macroeconomic system based on the Quantity Theory and Say’s
Law resulting in automatic full-employment equilibrium; and
finally after 1929-1934 Great World Depression, the Keynesian
System was introduced as a “revolution” (Keynesian Revolution)
in theory and practice. As a result of the Keynesian policies
implemented, European countries and the United States not only
got over the Great World Depression but also in the years
following the World War II, they have observed a fast and stable
growth for a long time. Moreover, cyclical fluctuations have been
controlled to a great extent. Even so, at the stage when the
Keynesian System was introduced, anti-Keynesian views and
macroeconomic systems were immediately introduced. Intense
academic discussions between advocates of these views and the
Keynesian economists have continued up until today. Meanwhile,
many economists such as J.R. Hicks, R.F. Harrod, N. Kaldor, M.
Kalesci, A.W. Philips, A. Hansen, P.A. Samuelson, E. Domar, J.
Tobin, R. Solow, A.M. Okun, W. Helier, G. Ackler, F.
Modigliani, and R. Musgrave and many others have developed
and defended the Keynesian System from different aspects. We
can characterize significant anti-Keynesian views and
macroeconomic systems as the “Counter-Revolution”.