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UCLA Keynes Classical Model Challenges MPS Mind Over Money & Lakatos Discussion

UCLA Keynes Classical Model Challenges MPS Mind Over Money & Lakatos Discussion

Question Description

1. Recall our discussion of Scientific Paradigms and Research programs. What core beliefs of the Classical model did Keynes challenge? Why are classical (and New Classical) Economists so resistant to Keynes’ theories?

2. What role (if any) did the Mont Pelerin Society (MPS) and its offshoots play in the paradigm shift that occurred in the late 20th Century, in both political and economic thinking?

3. Describe the notion of a “bubble” as given in the film Mind over Money. What did Vernon Smith’s experiment demonstrate

4. From Lakatos’s point of view. Describe the difference between the Rationalists and the Behavioralists as Scientific Research Programs. Why do they not get along?

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