Quotation of the Day…

by Don Boudreaux on November 1, 2012

in Economics, State of Macro

… is from page 91 of W.H. Hutt’s important, but regrettably neglected, 1979 volume, The Keynesian Episode (original emphasis; I believe that this quotation contains a typo: The “ever” in the second sentence likely should be “never.”):

For more than a century, however, what we can now recognize as the Keynesian fallacies were relative uninfluential.  This does not mean that pre-Keynesian economic could ever have been described as having determined policy.  Indeed, the teachings of the “classical” economics had nowhere led to the state adopting policies which were wholly based on their tenets.  The reputation of orthodox economics had, however, restrained certain major irrationalities, such as recourse to schemes based on the notion that spending (as distinct from pricing) creates employment.

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