... above dramatically demonstrate the stark contrast between the "old" Keynesians and the "new". Samuelson and the old-style Keynesians start with the "general" theory of unemployment equilibrium and end with the classical model of full employment as a "special" case. As long as there are unemployed resources - which, according to the old Keynesians, are most of the time - thriftiness is bad and expansionary monetary and fiscal policy (i.e., inflation and deficit spendings) are good. For 50 years, this "demand - management" model has been the standard approach in college economics. Now along comes a new generation of economists, known as "new" Keynesians, who have wisely changed their way of thinking. In the most popular textbook on macroeconomics, author N. Gregory Mankiw reverses the standard Keynesian pedagogy. In a brilliant move Mankiw begins with the classical model and ends with the Keynesian model, just the opposite of Samuelson & Company. The ...

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