Freshwater Economists, Austrian Economists and Popular Opinion

  • Roderick Macdonald


The previous chapter began an overview of opinions about the financial and economic crisis and its resolution, with particular attention to two ‘saltwater’ economists who have been media stars: Paul Krugman and Joseph Stiglitz. It should be noted that the younger generation of saltwater economists are less strident in their differences of opinion with ‘freshwater’ economists, who supposedly omit the ‘synthesis’ from what Samuelson called the ‘neoclassical synthesis’ that brought Keynes into the stream of neoclassical economic thought. In point of fact, the freshwater stream of thought operated a major progress in macroeconomic thinking in the 1970s, keeping much of Keynes’ approach using mathematical models and examining aggregated behaviour, but correcting much of his method and conclusions. The younger generation of saltwater economists consults and incorporates the work done by freshwater economists to a greater extent than economists who studied before the research work of the 1970s reached the classrooms.


Interest Rate Financial Crisis Financial Institution Mutual Fund Pension Fund 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Roderick Macdonald 2012

Authors and Affiliations

  • Roderick Macdonald
    • 1
  1. 1.École des sciences de la gestionUniversité du Québec à MontréalCanada

Personalised recommendations