Keynes's Economics and Institutional Economics Philosophical, Theoretical and Practical Similarities



After some affluent decades, in the late 1930s, institutional economics began to wane and lost its shining. In the history of economic thought, there are some reasons for this waning. Among these reasons, some economists had declared that the rise of Keynes provoked the premature sunset of institutionalism. Now, this question arises: "Did Keynes's ideas engender the decline of institutionalism or that of Keynesian economics?" It seems that, an intellectual paradigm dispels another paradigm when there are some basic practical, theoretical, and philosophical differences between the two. Are there any traceable signs indicating such differences between institutional doctrines and those of Keynes? These are the main questions examined in this paper. It will be demonstrated that there are some undeniable similarities between Keynes's economics and institutional economics, namely in philosophical, theoretical and practical arenas.
JEL Classification: B15, B22