Keynes, money and modern macroeconomics

Abstract

In a recent review of developments in macroeconomics since the Second World War, Oliver Blanchard (2000) asks what we know about macroeconomics that Fisher and Wicksell did not. In answering this question, the remainder of Blanchard’s survey proceeds on the tacit assumption that modern macroeconomists have resolved all the issues raised by Wicksell, Fisher and Keynes. Any confusion inherent in their work has been resolved by the consolidation of macroeconomics that took place post the1940s.