MODULE 35

History and Alternative Views of Macroeconomics

In this Module, you will learn to:

• Explain why classical macroeconomics wasn’t adequate for the problems posed by the Great Depression

• Discuss how Keynes and the experience of the Great Depression legitimized macroeconomic policy activism

• De fine monetarism and identify monetarist views on the limits of discretionary monetary policy

• Describe how challenges led to a revision of Keynesian ideas and the emergence of the new classical macroeconomics