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The climate of opinion among economists recently seems to have shifted in favour of the view that the Keynesian style of economic management does not work in industrial capitalism. This has provided an opportunity for various related doctrines like ''monetarism'' and ''supply-side economies'' to surface as contending views. They argue that the Keynesian view of economic management is theoretically defective and a better alternative is to rely less on economic intervention by the State and more on the market mechanism. This textbook brings into focus the radical content of Keynesianism by concentrating on the common macroeconomic tradition of Marx, Kalecki and Keynes. It shows how Marx''s method of analysis in terms of ''historical categories'' naturally leads to an analysis of capitalist commodity production under the principle of effective demand.
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