The ensuing picture of the economy appears to the non-Keynesian as a sort of trick film. Everything happens in a manner that is exactly the opposite of what he is used to. It is no longer the supply of labor, but the propensity to consume that determines the volume of production; the old and oft-refuted underconsumption theories — of which Keynes's theory is no more than a replica — once more become respectable.Indeed.
Monday, April 12, 2010
L. Albert Hahn and "The Economics of Illusion" from 1956
L. Albert Hahn wrote "The Economics of Illusion" in 1956 about the Keynesian Hoax. It most surely is a hoax. He states in his introduction about Keynes' theory :