And no, we are not all Keynsians now. Orthodox economics was upheld by the Austrians throughout the Keynesian episode, and most Keynsians themselves accepted the monetarist criticisms of their position formulated in the 1970s. (When Keynsian prediction was so systematically wrong for so long, only religious ardor could keep anyone believing in it). Monetarism is a half way house - it upholds a few of the theorems of orthodox economics. Keynsians who do not accept even those are so obviously just wrong that no one takes them seriously anymore (nobody believes in government spending "multipliers", for example). Only those on the left still believe a word of it. As a theoretical position, it was demolished long ago. Empirical econometrics, on the other hand, these days pays as little attention as possible to economic theory.
We're not all literal Keynsians. We're short run Keynsians. Everyone recognizes that Keyensian theory does not work in the long run since prices are flexible in the long run.
Orthodox economics was upheld by the Austrians throughout the Keynesian episode, and most Keynsians themselves accepted the monetarist criticisms of their position formulated in the 1970s.
LOL. "Orthodox" economics. And you accuse the Keyensians of being religious about their theories.
When Keynsian prediction was so systematically wrong for so long, only religious ardor could keep anyone believing in it). Monetarism is a half way house - it upholds a few of the theorems of orthodox economics.
Keynsian predictions are actually right in the short run. The evidence is overwhelming.
Keynsians who do not accept even those are so obviously just wrong that no one takes them seriously anymore (nobody believes in government spending "multipliers", for example).
That's true. Keynes theories have been expanded upon and microfounded. We don't use multipliers any more. We use the IS-LM model (actually more sophisticated, micro-founded models that are based on the concepts behind the IS-LM model).
Only those on the left still believe a word of it.
Is Mankiw "on the left?" Is Barrow?
As a theoretical position, it was demolished long ago. Empirical econometrics, on the other hand, these days pays as little attention as possible to economic theory.
You're obviosuly not an economist.