Classical Macroeconomics

John Maynard Keynes failed to correctly interpret classic economic concepts, and dismissed the classical explanations and conclusions as being irrelevant to the world in which we live. The trauma of the Great Depression and Keynes's changed definition of economic concepts, aided by Eugen Böhm-Bawerk, have made it difficult for modern economists to fully appreciate the classical insights. This outstanding book clarifies the classical explanations to resolve the continuing theoretical and policy disputes. Key chapters includeOn the Definition of MoneyKeynes's Misinterpretation of the Classical Theory of InterestThe Classical Theory of Growth and Keynes's Paradox of ThriftThe Mythology of the Keynesian Multiplier This unique book demonstrates that it is Keynes's understanding of some fundamental classical economic concepts which is at fault, and extends its analysis to other modern contributions in macroeconomics.