Welcome to Econ Talk, part of the Library of Economics and Liberty. I'm your host Russ Roberts

of George Mason University and Stanford University's Hoover Institution. Our website is econtalk.org

where you can subscribe, find other episodes, comment on this podcast, and find links to

another information related to today's conversation. Our email address is mailadicontalk.org. We'd

love to hear from you. Today is April 20th and my guest today is Ricardo

Haish, Professor of Economics at Columbia University. Ricardo, welcome to Econ Talk.

Thank you very much. It's a lot to be here. Our topic for today is Keynesian Economics,

very broadly defined. Its role in the classroom in scholarly research and public policy. I want

to start with the classroom. How are the ideas of Keynes still seen in the mainstream textbooks

and in most, say, principles of economics? I think they're really pervasive. In some

ways, they're as present as are the ideas of Smith or Ricardo. They're a little bit of

everywhere, especially, of course, in the macro part of the classes. When you see that

in that, it's still the case that in most undergraduate textbooks, you have some version

of a model of the Model of ISLM to explain agitdemand. You have it then when we resort

to explaining why is it that agitdemand policies have an effect. We're still resorting to things

like price and wage rigidity. There's still a very large emphasis on talking about monetary

and fiscal policy as the sources of fluctuations in output and the labor market. You see it

in all of these little bits and bits so that even when you're not talking about Keynes

or you're talking about, say, the real business cycle model, you're still that still often

shows up in opposition to the Keynes in view or as a response to it, so that in the same

way that the ideas of, as I was saying earlier, say Adam Smith, even if we don't spend chapters

just talking about the invisible hand, it seems to, in many ways, be pervasively in every

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