In these two volumes, a group of distinguished economists debate the way in which evidence, in particular econometric evidence, can and should be used to relate macroeconomic theories to the real world. Topics covered include the business cycle, monetary policy, economic growth, the impact of new econometric techniques, the IS-LM model, the labour market, new Keynesian macroeconomics, and the use of macroeconomics in official documents.

Since the middle of the twentieth century, economists have invested great resources into using statistical evidence to relate macroeconomic theories to the real world, and many new econometric techniques have been employed. In these two volumes, a distinguished group of economic theorists, econometricians, and economic methodologists examine how evidence has been used and how it should be used to understand the real world. Volume 1 focuses on the contribution of econometric techniques to understanding the macroeconomic world. It covers the use of evidence to understand the business cycle, the operation of monetary policy, and economic growth. A further section offers assessments of the overall impact of recent econometric techniques such as cointegration and unit roots. Volume 2 focuses on the labour market and economic policy, with sections covering the IS-LM model, the labour market, new Keynesian macroeconomics, and the use of macroeconomics in official documents (in both the USA and the EU). These volumes will be valuable to advanced undergraduates, graduate students, and practitioners for their clear presentation of opposing perspectives on macroeconomics and how evidence should be used. The chapters are complemented by discussion sections revealing the perspectives of other contributors on the methodological issues raised.

Does economics hold the key to everything or does the recent financial crisis show that it has failed? This book provides an assessment of modern economics that cuts through the confusion and controversy on this question. Case studies of the creation of new markets, the Russian transition to capitalism, globalization, and money and finance establish that economics has been very successful where problems have been well defined and where the world can be changed to fit the theory, but that it has been less successful in tackling bigger problems. The book then offers a historical perspective on how economists have, since the Second World War, tried to make their subject scientific. It explores the evolving relationship between science and ideology and investigates the place of heterodoxy and dissent within the discipline.

Roger Backhouse is a key figure in the field of economic methodology. Explorations in Economic Methodology both clarifies and responds to the issues raised by the literature and argues that methodology is an essential activity. Offering a constructive, but critical, response to the recent literature, this collection provides important new insights for students and researchers in economic methodology and the philosophy of science.

Economics is an established academic discipline, yet its methods and style of argumentation are far from being well understood. In the mid-1990s attempts have been made to understand economics through applying ideas from the philosophy of science, and especially from the writings of Popper, Kuhn and Lakatos and through economic rhetoric. The result has been controversial, with one school arguing that methodology is a fruitless exercise. This collection of essays seeks to both clarify and respond to the issues raised by the mid-1990s' literature and argues that methodology is an essential activity. The book begins with an application of Lakatos' methodology of scientific research programmes to contemporary macroeconomics and subsequent chapters go on to discuss questions raised by this approach. These argue that although the methodology has severe limitations, it nevertheless provides a useful starting point. After discussing, the approaches to methodology of some practising economists, the final chapters consider the perspectives on economics that result from pragmatism and empirical philosophy of science. This book should be of use to researchers and students interested in economi

This volume explores the different ways in which the history of macroeconomic thought can be written. Three historiographical chapters criticize both relativism and constructivism, arguing instead for an eclectic, pluralistic approach. The remaining chapters demonstrate the advantages of this, by adopting a range of approaches to the history of macroecononmic thought. The ideas of pre-Keynesian economists are analyzed from the perspective of modern economic theory. The story of macroeconomics since Keynes is told in three ways: a history without methodology, a methodological appraisal of Keynesian economics, a Lakatosian rational reconstruction in which monetarism and Keynesianism are viewed as part of the same research programme. Rhetorical analysis is applied to the work of Milton Friedman, John Muth, and Axel Leijonhufvud.

"Interpreting Macroeconomics" explores a variety of different approaches to macroeconomic thought. The book considers a number of historiographical and methodological positions, as well as analyzing various important episodes in the development of macroeconomics, before during and after the Keynesian revolution. Roger Backhouse shows that the full richness of these developments can only by brought out by approaches which blend both relativism and absolutism, and historical and rational reconstructions. Examples discussed include Hobson, Keynes and Friedman. The author has also published "New Directions in Economic Methodology" (June 1994).

Recent years have witnessed a dramatic growth in interest in economic methodology. However this work has moved in a number of significantly different directions, and it is not easy to see how several of these might be reconciled. The virtual consensus on some variant of the "falsificationism" associated with Kuhn, Lakatos and Popper that had emerged by the late 1970s has gone, and has been replaced by a range of more or less exclusive approaches. In "New Directions in Economic Methodology", some of the figures most closely associated with the most important of these new approaches provide new and definitive statements of their positions. The result reflects the diversity of work currently undertaken in economic methodology. Much, but no means all, of this work reflects a disatisfaction with the current practice of economics and in the course of the book various attempts to reform or replace existing practice are proposed. The book begins with chapters which examine some of the big questions which underlie economics. What are - and what should be - the aims of economics? How might these be pursued? It proceeds with a section which considers what is left of "falsificationism".

In recent years there has been a flowering of work on economic methodology. However there is no longer any consensus about which direction this should take or, indeed, even what the role and content of economic methodology should be. This book reflects this diversity. Its contributors are responsible for the major developments in this field and together they give an account of all the major positions which currently prevail in economic methodology. These include attempts to rehabilitate the 'falsification' of Kuhn, Lakatos and Popper, sociology of knowledge approaches, different forms of realism, contributions from the 'rhetoric' projectj and other perspectives which also view the economy as a text.

Twentieth-century philosophy has been dominated by issues concerned with language. These have left few areas of academic enquiry untouched; an awareness of language matters to a discipline because claims to knowledge can be made only by using language. However, economists have only come to recognize its importance relatively recently. Moreover whilst there has been much written on the subject of economics and language in the last decade, this has been dominated by the use of techniques borrowed from literary criticism. Whilst these have provided many valuable insights, they have tended to conceal the features of economics writing which distinguish it from writing in other disciplines. "Economics and Language" takes a broader view. Its approach is interdisciplinary, and it includes contributions from economists, linguists and literary theorists. It moves from chapters on the wider methodological implications of language issues within economics, to an analysis of how economic texts work. This ensures that methodological discussion is related directly to the practices of economics.

First published in 1993. Routledge is an imprint of Taylor and Francis, an informa company.

The definitive guide to the history of economic thought, fully revised twenty years after first publication Roger Backhouse's definitive guide takes the story of economic thinking from the ancient world to the present day, with a brand-new chapter on the twenty-first century and updates throughout to reflect the latest scholarship. Covering topics including globalisation, inequality, financial crises and the environment, Backhouse brings his breadth of expertise and a contemporary lens to this original and insightful exploration of economics, revealing how we got to where we are today.

This innovative history of welfare economics challenges the view that welfare economics can be discussed without taking ethical values into account. Whatever their theoretical commitments, when economists have considered practical problems relating to public policy, they have adopted a wider range of ethical values, whether equality, justice, freedom, or democracy. Even canonical authors in the history of welfare economics are shown to have adopted ethical positions different from those with which they are commonly associated. Welfare Theory, Public Action, and Ethical Values explores the reasons and implications of this, drawing on concepts of welfarism and non-welfarism developed in modern welfare economics. The authors exemplify how economic theory, public affairs and political philosophy interact, challenging the status quo in order to push economists and historians to reconsider the nature and meaning of welfare economics.

A Historiography of the Modern Social Sciences includes essays on the ways in which the histories of psychology, anthropology, sociology, economics, history and political science have been written since the Second World War. Bringing together chapters written by the leading historians of each discipline, the book establishes significant parallels and contrasts and makes the case for a comparative interdisciplinary historiography. This comparative approach helps explain historiographical developments on the basis of factors specific to individual disciplines and the social, political, and intellectual developments that go beyond individual disciplines. All historians, including historians of the different social sciences, encounter literatures with which they are not familiar. This book will provide a broader understanding of the different ways in which the history of the social sciences, and by extension intellectual history, is written.

A Historiography of the Modern Social Sciences includes essays on the ways in which the histories of psychology, anthropology, sociology, economics, history and political science have been written since the Second World War. Bringing together chapters written by the leading historians of each discipline, the book establishes significant parallels and contrasts and makes the case for a comparative interdisciplinary historiography. This comparative approach helps explain historiographical developments on the basis of factors specific to individual disciplines and the social, political, and intellectual developments that go beyond individual disciplines. All historians, including historians of the different social sciences, encounter literatures with which they are not familiar. This book will provide a broader understanding of the different ways in which the history of the social sciences, and by extension intellectual history, is written.

This book tells the story of the search for disequilibrium micro-foundations for macroeconomic theory, from the disequilibrium theories of Patinkin, Clower, and Leijonhufvud to recent dynamic stochastic general equilibrium models with imperfect competition. Placing this search against the background of wider developments in macroeconomics, the authors contend that this was never a single research program, but involved economists with very different aims who developed the basic ideas about quantity constraints, spillover effects, and coordination failures in different ways. The authors contrast this with the equilibrium, market-clearing approach of Phelps and Lucas, arguing that equilibrium theories simply assumed away the problems that had motivated the disequilibrium literature. Although market-clearing models came to dominate macroeconomics, disequilibrium theories never went away and continue to exert an important influence on the subject. Although this book focuses on one strand in modern macroeconomics, it is crucial to understanding the origins of modern macroeconomic theory.

Does economics hold the key to everything or does the recent financial crisis show that it has failed? This book provides an assessment of modern economics that cuts through the confusion and controversy on this question. Case studies of the creation of new markets, the Russian transition to capitalism, globalization, and money and finance establish that economics has been very successful where problems have been well defined and where the world can be changed to fit the theory, but that it has been less successful in tackling bigger problems. The book then offers a historical perspective on how economists have, since the Second World War, tried to make their subject scientific. It explores the evolving relationship between science and ideology and investigates the place of heterodoxy and dissent within the discipline.

This compact volume covers the main developments in the social sciences since the Second World War. Chapters on economics, human geography, political science, psychology, social anthropology, and sociology will interest anyone wanting short, accessible histories of those disciplines, all written by experts in the relevant field; they will also make it easy for readers to make comparisons between disciplines. A final chapter proposes a blueprint for a history of the social sciences as a whole. Whereas most of the existing literature considers the social sciences in isolation from one other, this volume shows that they have much in common; for example, they have responded to common problems using overlapping methods, and cross-disciplinary activities have been widespread. The focus throughout the book is on societal pressures on knowledge production rather than just theoretical lineages. This book is noteworthy because it Is the first book that puts together histories of the main social sciences since World War II, each written by a discipline specialist Enables the readers to realize that what they see as specific to their own discipline is in fact common to several Contains a chapter that proposes a blueprint for a history of the social sciences as a whole

John Maynard Keynes (1883-1946) was the most important economist of the twentieth century. He was also a philosopher who wrote on ethics and the theory of probability and was a central figure in the Bloomsbury Group of writers and artists. In this volume contributors from a wide range of disciplines offer new interpretations of Keynes's thought, explain the links between Keynes's philosophy and his economics, and place his work and Keynesianism - the economic theory, the principles of economic policy, and the political philosophy - in their historical context. Chapter topics include Keynes's philosophical engagement with G. E. Moore and Franz Brentano, his correspondence, the role of his General Theory in the creation of modern macroeconomics, and the many meanings of Keynesianism. New readers will find this the most convenient, accessible guide to Keynes currently available. Advanced students and specialists will find a conspectus of recent developments in the interpretation of Keynes.

This book re-examines early twentieth-century British welfare economics in the context of the emergence of the welfare state. There are fresh views of the well-known Cambridge School of Sidgwick, Marshall, Pigou, and Keynes, by Peter Groenewegen, Steven G. Medema, and Martin Daunton. This is placed against a less well-known Oxford approach to welfare: Yuichi Shionoya explores its foundations in the idealist philosophy of T. H. Green; Roger E. Backhouse considers the work of its leading exponent, J. A. Hobson; and Tamotsu Nishizawa discusses the spread of this approach in Britain. Finally, the book covers welfare economics in the policy arena: Maria Cristina Marcuzzo and Atsushi Komine discuss Keynes and Beveridge, and Richard Toye points to the possible influence of H. G. Wells on Churchill and Lloyd George. A substantial introduction frames the discussion, and a postscript relates these ideas to the work of Robbins and subsequent developments in welfare economics.

This book tells the story of the search for disequilibrium micro-foundations for macroeconomic theory, from the disequilibrium theories of Patinkin, Clower and Leijonhufvud to recent dynamic stochastic general equilibrium models with imperfect competition. Placing this search against the background of wider developments in macroeconomics, the authors contend that this was never a single research program, but involved economists with very different aims who developed the basic ideas about quantity constraints, spillover effects and coordination failures in different ways. The authors contrast this with the equilibrium, market-clearing approach of Phelps and Lucas, arguing that equilibrium theories simply assumed away the problems that had motivated the disequilibrium literature. Although market-clearing models came to dominate macroeconomics, disequilibrium theories never went away and continue to exert an important influence on the subject. Although this book focuses on one strand in modern macroeconomics, it is crucial to understanding the origins of modern macroeconomic theory.

In these two volumes, a group of distinguished economists debate the way in which evidence, in particular econometric evidence, can and should be used to relate macroeconomic theories to the real world. Topics covered include the business cycle, monetary policy, economic growth, the impact of new econometric techniques, the IS-LM model, the labour market, new Keynesian macroeconomics, and the use of macroeconomics in official documents.

In these two volumes, a group of distinguished economists debate the way in which evidence, in particular econometric evidence, can and should be used to relate macroeconomic theories to the real world. Topics covered include the business cycle, monetary policy, economic growth, the impact of new econometric techniques, the IS-LM model, the labour market, new Keynesian macroeconomics, and the use of macroeconomics in official documents.

The Great Recession of 2008 restored John Maynard Keynes to prominence. After decades when the Keynesian revolution seemed to have been forgotten, the great British theorist was suddenly everywhere. The New York Times asked, What would Keynes have done? The Financial Times wrote of the undeniable shift to Keynes. Le Monde pronounced the economic collapse Keynes s revenge. Two years later, following bank bailouts and Tea Party fundamentalism, Keynesian principles once again seemed misguided or irrelevant to a public focused on ballooning budget deficits. In this readable account, Backhouse and Bateman elaborate the misinformation and caricature that have led to Keynes s repeated resurrection and interment since his death in 1946.

Keynes s engagement with social and moral philosophy and his membership in the Bloomsbury Group of artists and writers helped to shape his manner of theorizing. Though trained as a mathematician, he designed models based on how specific kinds of people (such as investors and consumers) actually behave an approach that runs counter to the idealized agents favored by economists at the end of the century.

Keynes wanted to create a revolution in the way the world thought about economic problems, but he was more open-minded about capitalism than is commonly believed. He saw capitalism as essential to a society s well-being but also morally flawed, and he sought a corrective for its main defect: the failure to stabilize investment. Keynes s nuanced views, the authors suggest, offer an alternative to the polarized rhetoric often evoked by the word capitalism in today s political debates.

This compact volume covers the main developments in the social sciences since the Second World War. Chapters on economics, human geography, political science, psychology, social anthropology, and sociology will interest anyone wanting short, accessible histories of those disciplines, all written by experts in the relevant field; they will also make it easy for readers to make comparisons between disciplines. A final chapter proposes a blueprint for a history of the social sciences as a whole. Whereas most of the existing literature considers the social sciences in isolation from one other, this volume shows that they have much in common; for example, they have responded to common problems using overlapping methods, and cross-disciplinary activities have been widespread. The focus throughout the book is on societal pressures on knowledge production rather than just theoretical lineages. This book is noteworthy because it Is the first book that puts together histories of the main social sciences since World War II, each written by a discipline specialist Enables the readers to realize that what they see as specific to their own discipline is in fact common to several Contains a chapter that proposes a blueprint for a history of the social sciences as a whole