Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-28T14:06:17.753Z Has data issue: false hasContentIssue false
  • English
  • Français

General theorising and historical specificity: Hodgson on Keynes

Published online by Cambridge University Press:  27 March 2019

Rod O'Donnell
Rod O'Donnell*
Affiliation:
University of Technology Sydney, Sydney, Australia
*
*Corresponding author. Email: rod.odonnell@uts.edu.au
Get access Rights & Permissions [Opens in a new window]

Abstract

In relation to Keynes's thought on general theorising, consumption theory and institutions, this paper closely examines Geoff Hodgson's views as set out in his magisterial work, How Economics Forgot History. While in full agreement with its advocacy of the institutionalist programme, it finds that Keynes's position has been misunderstood in all three areas, and that deep compatibilities exist between the General Theory and institutionalist analysis. Using all his available writings, it is argued that Keynes's conception of a general theory is very different from that underpinning neoclassical economics so that criticisms of the latter are irrelevant to the former, that Keynes's ‘fundamental psychological law’ was never advanced as a universal law applicable to all economies, and that Keynes expressly analysed a historically specific economic institution and its assemblage of sub-institutions. Keynes is an ally, not an enemy, of institutionalism in pursuing better economic theory.

Keywords

Keynesgeneral theorisinghistorical specificityinstitutionalism
Type
Research Article
Information
Journal of Institutional Economics , Volume 15 , Issue 4 , August 2019 , pp. 715 - 731
Copyright
Copyright © Millennium Economics Ltd 2019 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Asimakopulos, A. (1991), Keynes's General Theory and Accumulation, Cambridge: Cambridge University Press.Google Scholar
Crotty, J. (1990), ‘Keynes on the Stages of Development of the Capitalist Economy: The Institutional Foundation of Keynes’ Methodology’ Journal of Economic Issues, 24(3): 761–780.Google Scholar
Dequech, D. (2003), ‘Keynes's General Theory: Valid Only for Modern Capitalism?’ Journal of Post Keynesian Economics, 25(3): 471–491.Google Scholar
Hodgson, G. (1989), ‘Post-Keynesianism and Institutionalism: The Missing Link’, in Pheby, J. (ed.), New Directions in Post-Keynesian Economics, Aldershot: Edward Elgar.Google Scholar
Hodgson, G. (1999a), Economics and Utopia, London: Routledge.Google Scholar
Hodgson, G. (1999b), Evolution and Institutions, Cheltenham: Edward Elgar.Google Scholar
Hodgson, G. (1999c), ‘Post-Keynesianism and Institutionalism: Another Look at the Link’, in Setterfield, M. (ed.), Growth, Employment and Inflation, Basingstoke: Macmillan.Google Scholar
Hodgson, G. (2001), How Economics Forgot History, London: Routledge.Google Scholar
Hodgson, G. (2002a), ‘Institutionalist Economics and the Problem of Historical Specificity’, in Nau, H. and Schefold, B. (eds), The Historicity of Economics, Berlin: Springer.Google Scholar
Hodgson, G. (2002b), ‘General Theorising versus Historical Specificity: A Problem for Post-Keynesians’, in Arestis, P., Desai, M. and Dow, S. (eds), Methodology, Microeconomics and Keynes, London: Routledge.Google Scholar
Hodgson, G. (2004), The Evolution of Institutional Economics, London: Routledge.Google Scholar
Hodgson, G. (2007), ‘The Problem of Historical Specificity’, in Ionnides, S. and Nielsen, K. (eds), Economics and the Social Sciences, Cheltenham: Edward Elgar.Google Scholar
Keynes, J. M. (1973–1989) The Collected Writings of John Maynard Keynes (vols I–XXX), London: Macmillan.Google Scholar
Nagel, E. (1961), The Structure of Science London: Routledge & Kegan Paul.Google Scholar
O'Donnell, R. (1997), ‘Keynes and Formalism’, in Harcourt, G. and Riach, P. (eds), A ‘Second Edition’ of the General Theory, London: Routledge.Google Scholar
O'Donnell, R. (2018a) ‘Clarifying General Theory/Special Case Relationships: Keynes and Orthodox Economics’, submitted unpublished paper.Google Scholar
O'Donnell, R. (2018b), ‘Clarifying Keynes's Theory of Consumption and Psychological Law’, History of Economics Review, forthcoming.Google Scholar
Rymes, T. (1988), Keynes's Lectures, 1932–35: Notes of Students, Ottawa: Carleton Economic Papers, Carleton University.Google Scholar
Schefold, B. (1980), ‘The General Theory for a Totalitarian State? A Note on Keynes's Preface to the German Edition of 1936’, Cambridge Journal of Economics, 4(2): 175–176.Google Scholar