08 On Why His Ideas Were Not Taken Up

The transcript discusses the intellectual situation in the 1960s and 70s, highlighting the disconnect between Keynesian macro analysis and price theory taught in graduate schools. Despite this discrepancy, people accepted and adopted policy analyses that didn't align with economic theory. The discussion touches on macroeconomics as general equilibrium with price rigidity and the use of rhetorical devices to communicate complex ideas. It also addresses the misinterpretation of economic models, particularly in the context of Keynes' work, and how these misunderstandings persisted in the profession for decades.

What literary devices did the speaker use to convey their message about economic theory?

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What challenges did the speaker identify regarding the determination of the overall price level?

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