r cycle: “from income to expenditure and back to income.” Thus, Keynes’ theory is a model of equilibrium income and expenditure--model of ‘income-expenditure.’ But as in every great achievement, there is always opposition.From the late 1950s, a group of economists known as the Monetarists successfully engaged their Keynesian opponents in a macroeconomic statistical race. Subsequently, faith in competition rose, while faith in Keynesian economics fell. “Although, one can argue that it did little more than open the door through which the true counter-revolutionaries, the New Classicals slipped in,” (Will). Amazingly, some of its adversaries that challenged the intellectual claims of the Monetarist controversy - bearing in mind, it were these experimental issues opposed to the theoretical issues, which divided Monetarists from Keynesians. Nevertheless, the biggest guns of Keynesian macroeconomics (Robert Solow, James Tobin, and many more) that came out to combat a single man with some very compelling ideas, Milton Friedman. Despite the fact that, at this time it would be hard to find any single economist, who did not have an opinion on theories.Monetarism is acknowledged as a Neoclassical “counter-revolution” to the prevailing Keynesian Revolution. Friedman 's model explores the 'internal' logic of these developments by examining the sociology of economic knowledge construction and destruction. From here Monetarism was a powerful intellectual revolution, which has left an indelible imprint on macroeconomics and economic policy forever. Or was it just a fad? Whatever your conclusion, there can be no doubt that the “Monetarist counter-revolution” that raged in economics has been one of the most fervently contested battles in ‘modern’ economics.The great “counter-revolutionary” contribution was the introduction of the natural rate hypothesis by Fri...
