Cambridge Economics in the Post-Keynesian Era: How Mainstream Economics Replaced Cambridge Economics

Abstract

The book Cambridge Economics in the Post-Keynesian Era: The Eclipse of Heterodox Traditions, by Ashwani Saith, explains how various approaches to the study of economics at Cambridge, UK, were replaced by mainstream economics, as practiced in leading North American universities. This article reviews the book, while also connecting the narrative provided in the book to central questions regarding the Cambridge economic tradition, and the various approaches that constitute it. The differences between the type of applied economics developed at Cambridge and in contemporary mainstream economics are also discussed. To do so, a distinction between Marshallian realism and Walrasian formalism is made here. Albeit this distinction is not emphasised in Saith’s book, it helps to supplement and understand the persuasive and important narrative provided by Saith.