Download 25 Years of Economic Theory: Retrospect and prospect by W. F. Duisenberg (auth.), T. J. Kastelein, S. K. Kuipers, W. PDF

By W. F. Duisenberg (auth.), T. J. Kastelein, S. K. Kuipers, W. A. Nijenhuis, G. R. Wagenaar (eds.)

Almost 3 years handed because the school of Economics of the collage of Groningen celebrated its twenty fifth Anniversary in 1973. overdue, yet no longer too overdue we are hoping, to provide the lectures of so much of our distinct visitors, who got here from the U.S. and assorted ecu international locations to notify the Congress contributors in their opinion and ideas on "25 Years of financial conception: Retrospect and Prospect. " the issues we met in publishing the lectures, in response to the contract we made with our site visitors, should not strange, as we all know who has been an editor of this kind of quantity prior to. The promise to offer a lecture and to jot down it down afterwards in addition is far tougher to keep up than purely to offer a speech. everyone is aware there's not anything so terrifying as to be reminded of your promise to put in writing your lecture, specifically if just a type-written textual content, positioned down from a tape, is at your disposal. you're convinced of your remembrance: "That very day I heard applause, there have been pleasant phrases and maybe a nation of now not finishing enthusiasm. And now I obtain this type-written textual content of my speech with a request, filled with innocence, of those pleasant committee contributors, "will you be so style as to arrange your textual content for book ']" yet this one, is that this my textual content? Unbelievable.

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Economists should probably devote more time to these international issues; they should not be left to the purely monetary specialists and to those who are acquainted with international high finance. I am glad to refer these problems to Dr. Sodersten. But the possibility of a monetary crisis will be with us for the coming years. There are no easy solutions for that. Finally, a watershed in economic thinking can be observed. The word "watershed" had been brought up by Dr. Simon, when he referred to the history of the University of Groningen.

This basic idea has remained with us, but it has been supplemented by all kinds of other neo-Keynesian relationships. For instance, income distribution may enter the consumption function; indeed, separate consumption functions may be written down for workers and for "capitalists". Exports depend on the wage level, and therefore the wage level may influence employment (which was originally an anti-Keynesian idea), government expenditure may be influenced by tax revenue or by the budget deficit. Investment may be influenced by anything; by superliquidity, even by relative prices of the factors of production, a typical classical notion.

BETWEEN THE SOUND AND THE SIMPLE-MINDED 41 An important topic of discussion in international economic policy during the 1950's and 60's has been the development ofthe terms oftrade between industrial and less developed countries. One of the most influential schools of thought was that proposed by Raul Prebisch and a group of economists around him at the Economic Comission for Latin America. Prebisch was averse to the thought that the Latin American economies should try to grow by increasing their exports of primary products - raw materials and food products.

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