Collective and individual rationality: Maynard Keynes' methodological standpoint and policy prescription

Denis, A. (2002). Collective and individual rationality: Maynard Keynes' methodological standpoint and policy prescription. Research in Political Economy, 20, pp. 187-215.

[img]
Preview
Text - Accepted Version
Download (657kB) | Preview

Abstract

Some advocates of laissez-faire, including Smith and Hayek, have proposed various ‘invisible hand’ mechanisms to ensure that self-seeking behaviour at the micro-level leads spontaneously to desirable social outcomes at the macro-level. Keynes shares their holistic approach, but rejects their invisible hand mechanisms. He analyses the pathology of capitalism as rooted in a multi-player prisoners' dilemma. Keynes assigns a critical role to his own class, the ‘educated bourgeoisie’ in the reform process required to resolve that dilemma. The paper highlights the distinction and intimate connection between micro-level individualism, and the macro-level planning required to preserve it, in Keynes' policy standpoint.

Item Type: Article
Divisions: School of Social Sciences > Department of Economics
URI: http://openaccess.city.ac.uk/id/eprint/18416

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics