From Keynesianism to Monetarism : the evolution of UK macroeconometric models

Long-term unemployment, which Keynesianism seemed to have banished, is again at the top of the political agenda. Understanding why Keynesianism gave way to monetarism two decades ago has therefore assumed a new urgency. Peter Kenway explains the change from Keynesianism to Monetarism in Britain in the 1970s through the studies of the evolution of the macroeconometric models of the UK economy. The models were the creations of some of the leading academic economists who sought to influence - and often alter radically - the conduct of economic policy in Britain from the late 1960s onwards. These models, and the extensive documentation surrounding them, form a source of information which provides insight into the arguments behind the policies that were proposed.