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Institutions, Behaviour and Economic Theory: A Contribution to Classical-Keynesian Political Economy, by Heinrich Bortis
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The failure of centrally planned socialism and the serious problems arising with the capitalist system requires a middle way between both doctrines. In this book it is argued that a synthesis of Classical and Keynesian economic theory provides the basis for this intermediate system. A monetary production economy is primarily considered. The author sets up a system of linking political economy with other social sciences, i.e. sociology, law and politics in the traditional sense, thus establishing the unity of the social sciences.
- Sales Rank: #5382222 in Books
- Brand: Brand: Cambridge University Press
- Published on: 1996-11-13
- Original language: English
- Number of items: 1
- Dimensions: 8.98" h x 1.18" w x 5.98" l, 1.87 pounds
- Binding: Hardcover
- 464 pages
- Used Book in Good Condition
From the Back Cover
This book is about the conceptual foundations of an intermediate way between liberalism and socialism. From a standpoint of economic theory, this middle way is conceived of as a synthesis of classical (Ricardian) and Keynesian political economy. While the former deals with proportions between individuals or collectives and society in tackling the problems of distribution and value on the basis of the surplus principle, the latter is concerned with the scale of economic activity as explained by the principle of effective demand. Political economy pictures the economic aspects of the functioning of the institutional system within which the behaviour of individuals is embedded. The economy considered is, primarily, neither a market nor a planned economy, but, rather, a monetary production economy. To establish an alternative to liberalism and socialism requires setting up a system of the social sciences. In this work suggestions are made for linking political economy with other social sciences, i.e. sociology, law and politics in the traditional sense, thus establishing the unity of the social sciences. In a Keynesian vein, the social sciences are conceived of as moral sciences, a view which gives rise to a specific philosophy of history. To complete the picture, issues of method associated with the theory of knowledge in the social sciences and the problem of linking theory with historical reality are also covered.
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How not to write a book on John Maynard Keynes
By Michael Emmett Brady
This could have been an excellent book if Bortis(B)had relied on the three major books Keynes wrote-A Treatise on Probability(TP)in 1921,A Treatise on Money in 1930,and the General Theory(GT) in 1936.Unfortunately,B relies far too heavily on the error filled work of Carabelli(1988),Fitzgibbons(1988),and O'Donnell(1989).This results in B arriving at three fundamentally flawed conclusions.The first is that Keynes did not have a general theory that was supported by a specific mathematical model and microeconomic analysis.Instead,Keynes had a vision about a just society based on his moral and ethical views.This "vision" also had extensive connections with Keynes's social,political,institutional,educational and global concerns.The "general theory"is primarily a book that seeks to convince the reader of the necessity of implementing Keynes's vision,a vision,however ,that Keynes himself could not support on the battlefield of technical and analytic competence because Keynes's mathematics was rusty.Thus, Keynes was unable to present a formal model of his theory in economic terms.The main conclusion is that, from an economic standpoint,Keynes's "theory" is very undeveloped and unclear.It needs to be rewritten and updated.Contrary to B,the mathematical model of the GT can be found in chapters 10,20 and 21 of the GT.Keynes then compares his mathematical model with the mathematical model of Pigou in the appendix to chapter 19 of the GT.Chapter 3 provides a brief introduction by Keynes to these later chapters.Second,the three authors that B relies on,listed above ,base their understanding of Keynes's position on the quantitative measurement of probabilities on a misreading of CHAPTER 3 of the TP, combined with the severe misinterpretation of Frank Ramsey in two book reviews published in 1922 and 1926,respectively.Ramsey totally misconstrued the meaning Keynes gave to the terms "nonnumerical" and"nonmeasurable".Keynes's definition ,given in chapter 15 of the TP,IS THAT TWO NUMERALS,NOT ONE(i.e.,nonnumerical means not by one numeral),ARE REQUIRED TO SPECIFY THE PROBABILITY RELATION in general.Keynesian probabilities are primarily intervals(set theoretic)with a lower bound and an upper bound.The third problem is that B ,again,misconstrues Keynes's views on the applicability of mathematical modeling in economics in general by relying on the unsupported claims and speculations of Carabelli,O'Donnell and Fitzgibbons,based,again, on their severe misreading of chapter 3 of the TP and omission of the crucial chapters of the TP,chapters 15 and 17.The view that Keynes did not really understand microeconomics or know how to provide a mathematical model of his theory or provide a general theory of macroeconomics,etc., are canards which are the result of the failure to read what Keynes actually wrote.
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