Question
In: Economics
Sandmo says (p.354) “While Keynes’ General Theory is a brilliant book…” it nevertheless “has one rather...
- Sandmo says (p.354) “While Keynes’ General Theory is a brilliant book…” it nevertheless “has one rather obvious weakness; it never assembles the various parts of the analysis in one consistent whole” Do you agree with Sandmo? Explain.
Solutions
Expert Solution
Sandmo has been a Norwegian economist, who came up with this conclusion about the Keynes book and he is right in his capacity, but I do not agree with Sandmo because Economics has different dimensions and become very complex when two or more dimensions are combined together. For example, when fiscal policy and monetary policy are combined then objectives of these policies become contradictory in nature. One such case is promotion of economic growth as well as price stability both at the same time. It makes very difficult for the Keynes to bring all the analysis in one consistent recommendation. So, it is the subject matter of economics, its different dimensions, complexities and contradictions that make the analysis by Keynes to be in part. Further, economics is evolving in nature and what Keynes observed and mentioned in his book, may not be the same when Sandmo observed. So, Sandmo's conclusion is not fair in this regard.
Rahul Sunny answered 7 months agoRelated Solutions
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