The Legacy of Keynes and Friedman.

• Author: Tiwari, Kashi Nath

Numerous books, monographs, and proceedings have appeared over the last four decades encompassing the theories and legacies of John Maynard Keynes and Milton Friedman. This book is a welcome addition to the long list of books on the two schools of economic thought, as it offers new insights through comparisons and contrasts in a style that can be comprehended by laypersons and appreciated by specialists. In one volume the author has succeeded in providing a well-balanced and comprehensive analysis of the philosophies of Keynes and Friedman.

William Frazer, the author, is an eminent economist with numerous scholarly publications to his credit. The author is considered an authority on the economic philosophies of Keynes and Friedman. He has thoroughly investigated the works of these two economists for several decades. In addition to examining the works of Keynes and Friedman, the author also provides a thorough analysis of the works of other eminent economists who fall into one of five categories: independent thinkers, followers of Friedman, critiques of Friedman, followers of Keynes, and critiques of Keynes.

The forces of market demand and supply appear to determine and deliver the optimal values of economic variables such as GNP, employment, interest rate, price level, and the exchange rate. Economic efficiency is greatly retarded by interventionary actions of governments and central banks. How far should these two entities be allowed to interfere with the functioning of a market economy. In presenting the views of monetarists and fiscalists, and weighing the pros and cons of various policy-related issues, the book will prove to be quite helpful for the policymakers of the former Eastern Bloc countries who are looking toward the West for help to lay down the strong foundations of a market-based economy. The author has presented the views and economic models of Keynes and Friedman with such a lucidity that it can even be followed by the general public who have had no formal academic training in economics. Yet the accompanying analysis has sufficient rigor to challenge the minds of even highly trained economists.

The book is comprised of nine chapters: Introduction; Neoclassical Economics and the Monetary Revolution; Microeconomics, the Revolution, and Ideology; Some Monetary Mechanics and History, the State, and International Dimensions; Keynesian Mechanics: Deficits, Motion, and Time; Keynesian Variables, Growth and Time Preference for...