Analyse Keynes’s critique of Classical [or ‘neoclassical’] theory and policy during the 1930s Depression and evaluate whether his theory and policy is still relevant to today’s post-Crisis (or Great Recession) situation.
MODULE NAME: MANAGING THE ECONOMY
Analyse Keynes’s critique of Classical [or ‘neoclassical’] theory and policy during the 1930s Depression and evaluate whether his theory and policy is still relevant to today’s post-Crisis (or Great Recession) situation.
Please use Ariel font size 12 with single spacing.
Everything should be written in Havart reference style.
IN THE ESSAY YOU CAN DISCUSS AS “CLOSED” ECONOMY ANALYSIS ( NO EXPORTS, NO IMPORTS ).
IN THE ESSAY CONCENTRATE ON THEORETICAL VISION.
TALK ABOUT 1 BACKGROUND, 2 CLASSICAL, 3 KEYNES.
4. THINGS TO CONSIDER:
A) DOES TODAYS MAINSTREAM MACRO INCLUDE ALL OF KEYNES INSIGHTS?
B) ARE THE 1930s AND 2008 EPISODES BASICALLY THE SAME SITUATION?
STRUCTURE:
There should be an introduction that provides some overall background to the question, identifies the main issues to be considered and clarifies the order in which they will be considered.
There should be a main body with clearly written and punctuated sentences, grouped logically into paragraphs of appropriate length, with clear linkages between paragraphs.
There should be a conclusion that draws together the points of most importance in a way that directly provides a clear answer to all aspects of the essay question.
Marking criteria for STRUCTURE:
Exceptionally well organised arrangement of content in introduction, main body and conclusion.
Exceptionally clear logical flow of argument between different parts of the work.
KNOWLEDGE AND UNDERSTANDING:
The essay should be able to explain key assumptions of ‘Classical’ theory and link this to their significance for policy. The essay should be able to explain key assumptions of Keynes’s theory and link this to their significance for policy.
The essay should show awareness of the relevance of historical context. The essay should show awareness of similarities and differences (especially in terms of targets, goals and tools of economic policy and in economic structure) between today’s post-Crisis/Great Recession situation and the 1930s Depression context.
Marking criteria for KNOWLEDGE AND UNDERSTANDING:
The knowledge of macroeconomic theory demonstrated is exceptional.
Discussion of the comparative macroeconomic frameworks used shows an exceptional level of relevance, clarity, understanding and insight consistently beyond the assignment brief.
There is an exceptional awareness and discussion of the relevance of historical context in the comparison of the Depression with todays’ situation.
ANALYSIS:
The essay should be able to explain the reasons why some economists consider Keynes’s theory to be a relatively superficial modification of Classical theory. The essay should be able to link this position to the idea that Keynes’s ideas are not particularly relevant to policy in managing macroeconomic recovery in today’s post-Crisis/Great Recession situation.
The essay should be able to explain the reasons why some other economists consider Keynes’s theory to have major implications for modern macro theory. The essay should be able to link this position to the idea that Keynes’s ideas are highly relevant to policy in managing macroeconomic recovery in today’s post-Crisis/Great Recession situation.
The essay should be able to offer a reasoned evaluation of these positions. The essay should offer evidence of wider reading to support this analysis.
Marking criteria for ANALYSIS:
There is an outstanding analysis of rival assessments of the significance of Keynes’s ideas for macroeconomic theory
Provides outstandingly clear, consistent and insightful linkage of these assessments to their policy relevance in today’s world.
Evaluates the rival assessments of theory and policy in an in an outstandingly consistent and relevant way, showing some insight and occasionally going beyond the assignment brief
FIGURES, TABLES, DATA, CITATIONS AND REFERENCES:
The essay should demonstrate an excellent use of supporting evidence (figures, tables and data) and figures and tables should be referred to, presented well and sufficiently described in the text.
Sources should be properly cited and provided in a list of references in a correct Harvard system of referencing convention at the end of the essay.
Marking criteria for FIGURES, TABLES, DATA, CITATIONS AND REFERENCES:
Outstanding provision and presentation of relevant figures, tables and supporting data, frequently exceeding the assignment brief.
References to data and tables are of exceptional quality, frequently exceeding the assignment brief.
Exceptional descriptions/explanations of figures in the text, frequently exceeding the assignment brief.
Outstanding quantity quality and depth of source citation.
Excellent use of Harvard referencing system.
Useful books:
Mankiw, G. 2012 Macroeconomics 8th edition, Worth Publishers ( our key text book )
Blanchard, O. Amighini, A. and Giavazzi, F. 2010, Macroeconomics: A European Perspective, Pearson Education.
Skidelsky, R. 2009, Keynes: The Return of the Master, Allen Lane.
Krugman, P. 2008, The Return of Depression Economics and the Crisis of 2008, Allen Lane
Feinstein, C. (ed) 1983 The Managed Economy: Essays in British Economic Policy and Performance since 1929, Oxford University Press
Togati, T.D. 1998 Keynes and the Neoclassical Synthesis: Ensteinian versus Newtonian Macroeconomics, Routledge
Keynes, J. M. 1936 The General Theory of Employment Interest and Money, Cambridge