WHITHER MACROECONOMICS? THE EVOLUTION OF MACROECONOMIC THOUGHT SINCE KEYNES

Macroeconomics is mainly a twentieth-century development and has gone through a gradual change since its rise. Historical events that challenged existing theories and resulted in empirical failures led to the evolution of new ideas, which in turn, gave rise to revolutions and counter- revolutions in macroeconomics. The purpose of this study is to provide insight into the way macroeconomics has evolved. The study aims to shed light on the evolutionary process it has experienced and to point out that major developments in macroeconomic thought can not be addressed independently of the historical context. In this regard, it demonstrates a brief discussion of the history of macroeconomics since Keynes’s General Theory. In the last part, it asserts that macroeconomics will certainly continue to change and progress by a process of evolution just as much as it has done in the past.

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