5 AN ESSAY ON POST-KEYNESIAN THEORY: A NEW PARADIGM IN ECONOMICS

THE IMPACT OF Keynes's work in the 1930's has been viewed by some economists as a in economic thinking (see Lawrence R. Klein [56, 1947]). Yet, to those who were most closely associated with Keynes at Cambridge during that period, the revolution proved largely abortive. Over the past 30 years, many of Keynes's critical insights into the workings of a modern, technologically advanced economy seem to have been ignored, with the result that there has been little fundamental change in the way economists perceive the world. Those one-time associates of Keynes, joined by a small number of the younger generation at Cambridge and elsewhere, have consistently tried to highlight the incompatibility of Keynes's views with orthodox even as they worked to develop more fully a of The general theory (see Joan Robinson [78, 1952]). This generalization may be said to represent, in Thomas Kuhn's sense [62, 1962], a new paradigm; and since it extends the analysis set forth in Keynes's Treatise on money (1930) and The general theory, it can be termed post-Keynesian.' Few American economists seem aware of the major works that have contributed to the development of this new paradigm2 and fewer still, even among those likely to be sympathetic, seem to be aware of the