Now you might say, if this stuff is so out of fashion, shouldn\’t it be dropped from the curriculum? But the funny thing is that while old-fashioned macro has increasingly been pushed out of graduate programs – it takes up only a few pages in either the Blanchard-Fischer or Romer textbooks that I am assigning, and none at all in many other tracts -…out there in the real world it continues to be the main basis for serious discussion
Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back.
In short, because we\’ve advanced beyond Keynes, we should still teach Keynes, because people who have not advanced beyond Keynes still believe Keynes.
Purely a personal viewpoint, of course, but wouldn\’t it be easier to teach everyone the stuff that corrects Keynes and thus end up with, in time, people less in hock to to the ideas of a now dead defunct academic scribbler?