1. Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

2. 2 Book One - Keynes’s Unaccomplished Revolution (the Federico Caffè Lectures) Contents: Three Parts (called Books) I A decision to break with orthodoxy II The ‘revolution’ after Keynes Book Two - The Cambridge School of Keynesian Economics Preface Prelude III Richard F. Kahn (Co-author of The General Theory ?) IV Joan V. Robinson (The woman who missed the Nobel Prize for Economics) V Nicholas Kaldor (Growth, income distribution, technical progress) VI Piero Sraffa (The critical mind) Interlude VII Richard M. Goodwin (The missed Keynes-Shumpeter connection) Postlude Book Three - Towards a “production paradigm” for an expanding economy VIII Beyond neoclassical economics IX The stage of pure economic theory X The stage of institutional investigation XI Back to the future of the Keynesian revolution Indexes Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

3. 3 The “Keynesian revolution” This book deals with item 2): the part where the “Keynesian revolution” did not succeed Why did it not succeed The third (major) part of this book is aimed at reversing the original (destructive) attitude: concentration on the positive (constructive) aspects of the “Keynesian revolution” Preface Peculiarities of the reactions to Keynes (young versus contemporary generation) The theory was incomplete (to a considerable extent); Originally the major efforts concentrated on the destructive, rather than on the constructive aspects 1)success as recipe for economic policy 2)Scarce success as a radically new economic theory Keynes and the Cambridge Keynesians Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

4. 4 Book One - Keynes unaccomplished revolution Book Three - Towards a production paradigm for an expanding economy Book Two - The Cambridge School of Keynesian Economics Keynes and the Cambridge Keynesians II The “revolution” after Keynes A decision to break with orthodoxy Chapter I Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

5. 5 Book One - Keynes unaccomplished revolution Book Three - Towards a production paradigm for an expanding economy Book Two - The Cambridge School of Keynesian Economics Keynes and the Cambridge Keynesians The “revolution” after Keynes I A decision to brake with orthodoxy Chapter II Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

6. 6 Book Two - The Cambridge School of Keynesian Economics Book Three - Towards a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

7. 7 Book Two - The Cambridge School of Keynesian Economics Book Three - Towards a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians The pupils of the first hour Prelude Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

8. 8 Keynes and the Cambridge Keynesians Book Two - chapter III Richard F. Kahn (1905-1989) co-author of The general Theory? Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

9. 9 Keynes and the Cambridge Keynesians Book Two - chapter IV Joan Robinson (1903-1983) The woman who missed the Nobel Prize for Economics Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

10. 10 Keynes and the Cambridge Keynesians Book Two - chapter V Nicholas Kaldor (1908-1986) Growth, income distribution, technical progress Prof. Nicholas Kaldor Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

11. 11 Keynes and the Cambridge Keynesians Book Two - chapter VI The critical mind Piero Sraffa (1898 – 1983) Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

12. 12 Book Two - Chapter VI - Piero Sraffa Book Three - Towards a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians VI.1 A brief bio-bibliographical sketch VI.2 An Italian Economist at Cambridge VI.3 Continuity and change in Piero Sraffa’s Thought Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

13. 13 Book Two - The Cambridge School of Keynesian Economics Book Three - Towards a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians Unwise behaviour Interlude Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

14. 14 Keynes and the Cambridge Keynesians Book Two - chapter VII - the missed Keynes-Shumpeter connection Richard Murphey Goodwin (1913-1996 ) Richard Stone (1913 – 1991) Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

15. 15 Book Two - The Cambridge School of Keynesian Economics Book Three - Towards a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians Postlude : Fighting for Independence 1.Reality (and not simply abstract rationality) as the starting point of economic theory 2.Economic logic with internal consistency (and not only formal rigour) 3.Malthus and the Classics (not Walras and the Marginalists) as the major inspiring source in the history of economic thought 4.Non-ergodic (in place of stationary, timeless) economic systems 5.Causality vs. interdependence 6.Macroeconomics before microeconomics 7.Disequilibrium and instability (not equilibrium) as the normal state of the industrial economies 8.Necessity of finding an appropriate analytical framework for dealing with technical change and economic growth 9.A strong, deeply felt social concern Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

16. 16 Book Three - Toward a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians VIII Beyond neoclassical economics IXThe stage of pure economic theory XThe stage of institutional investigation XIBack to the future of the “Keynesian revolution” Book Two - The Cambridge School of Keynesian Economics Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

17. 17 Book Three - Toward a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians Beyond neoclassical economics Book Two - The Cambridge School of Keynesian Economics IXThe stage of pure economic theory XThe stage of institutional investigation XIBack to the future of the “Keynesian revolution” Chapter VIII Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

18. 18 Book Three - Toward a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians Book Two - The Cambridge School of Keynesian Economics XThe stage of institutional investigation XIBack to the future of the “Keynesian revolution” The stage of pure economic theory VII Beyond neoclassical economics Chapter IX Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

19. 19 Book Three - Toward a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians Book Two - The Cambridge School of Keynesian Economics XI Back to the future of the “Keynesian revolution” VII Beyond neoclassical economics IX The stage of pure economic theory Chapter X The stage of institutional investigation Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians

20. 20 Book Three - Toward a production paradigm for an expanding economy Book One - Keynes unaccomplished revolution Keynes and the Cambridge Keynesians Book Two - The Cambridge School of Keynesian Economics VII Beyond neoclassical economics IX The stage of pure economic theory X The stage of institutional investigation Back to the future of the “Keynesian revolution” Chapter XI Faculty of Economics, University of Bologna, March 19, 2009 – Keynes and the Cambridge Keynesians