Vernengo On Recent History Of Macroeconomics

Matias Vernengo argues that, "The fundamental problem of the neoclassical/marginal approach, and the importance of Keynesian analysis, can ONLY be properly understood in light of the 1960s capital debates."

Vernengo is riffing off a Krugman post on his New York Times blog. A commentator on that brings up John Eatwell's 1980s work on capital theory and Keynes. See also this Krugman post on Keynes' debunking of the idea that unemployment is caused by excessively high wages.

Update (12 October 2011): Peter Cooper has two posts discussing Vernengo's views.