Monetarism and Market Clearing

The 1970s and the 1980s were marked by fierce controversies between Keynesian and monetarist economists. 1 A quarter of a century later, the macroeconomics scene has changed dramatically with the dethroning of Keynesian macroeconomics and its replacement by new classical macroeconomics and real business-cycle models. This evolution can be encapsulated as the rising of Walrasian macroeco-nomics. 2 A reshuffling of standpoints has ensued. In the face of this new way of practising macroeconomics, the old foes of Keynesianism and monetarism have discovered that they have more in common than they previously believed, in particular that they share the same Marshallian affiliation. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.