The Keynesian Episode

by W.H. Hutt

The late W. H. Hutt was a preeminent and persistent critic of the economic theories of John Maynard Keynes. In The Keynesian Episode , he presents a comprehensive review of Keynes’s General Theory , including the finest critique to date of the Acceleration Principle. He questions the very legitimacy of Keynes’s fundamental epistemology. In Hutt’s discussion of economics there is a refreshing emphasis on the vital importance of the market price system as a coordinating process. As Dr. Hutt “The intellectual developments for which Keynes’s General Theory appeared to be responsible had caused a setback to scientific thinking about human economic relations at a crucial epoch. Keynes tried to find in the factors determining the value of the money unit the genesis of output and income. . . . He linked monetary theory to the economic world only through unsatisfactory concepts such as employment, income, and effective demand.” In this unsparing analysis of the theories of John Maynard Keynes, W. H. Hutt explains why Keynes’s ideas attracted both practical politicians and ardent academics and why they do not square with the logic of long-accepted laws of economics. Professor Hutt outlines methods by which modern economies can extricate themselves from the disasters into which Keynesian theory has plunged them.

Genres: Economics

449 pages, Paperback

First published January 1, 1979

Reviews

[York · Rating 5 out of 5]

As timely as when it was published half a century ago. Unfortunately so, as Mr. Hutt would undoubtedly agree. The only criticism I have is that Hutt uses a lot of idiosyncratic definitions, something that he acknowledges himself, even quoting Haberler pointing this out. He has good reasons for doing so but it makes the going quite heavy at times.

All in all highly recommended as it offers not just a thorough critique of the Keynesian fallacies but also a glimpse back into a tine where they appeared to be on the cusp of elimination.