This book addresses the long absence of a satisfactory theory of macroeconomics. Keynesian theory is not consistent with rational self-interest, but neo-classical economics is unable to explain economic volatility and the trade cycle. Athol Fitzgibbons critiques the leading macroeconomic theories, which he believes are unduly mechanistic because they are incompatible with non-quantitative knowledge.
The author sketches the intellectual history of partial knowledge and judgement so far as these relate to macroeconomics, and rejects the claims that Keynes recanted the analysis of practical reason in his Treatise on Probability. Fitzgibbons's theme is the possibility of a new synthesis of Keynes and the neoclassical system. This stresses financial rationality, but it also recognizes that there is an element of indeterminacy in both government policies and the movements of the market.
Athol Fitzgibbons, formerly Associate Professor of Economics, Griffith University, Australia
Contents: Preface Part I: The Economics of Indeterminacy 1. The Crisis in the Keynesian System 2. Indeterminate Decisions 3. Uncertainty and Decisions Part II: A Critique of Macroeconomics 4. Macroeconomic Theories 5. The Theory of Macroeconomic Policy Part III: Economics and Practical Reason 6. Keynes and the Intellectual Context 7. Conclusion