Two things are missing in the discussion of hysteresis: First, in contrast to the classical natural rate of unemployment the NAIRU as a typical brick of New Keynesian Economics
and hysteresis should be mentioned.
Among the important findings is that Keynesian economics
did not really take hold until the War, and by taking hold is meant Keynes as a central focus for theoretical and policy analysis.
Palley, Thomas, Louis-Phillippe Rochon & Matias Vernengo (2012) 'Economics and the economic crisis: the case for change' (Statement of the co-editors) Review of Keynesian Economics
(Inaugural issue) Autumn, pp.
At the level of theory, a major factor in my view was the tragedy that post-war generations of students of economics, especially in the USA, were brought up on Paul Samuelson's (and Alvin Hansen's) textbook versions of Keynesian economics
instead of on Lorie Tarshis's textbook, The Elements of Economics.
From its start, Keynesian economics
was a brazen, short-range experiment in getting something for nothing, mingled with an embarrassing measure of self-delusion.
Many economists and policymakers believed that Keynesian economics
provided a means to guarantee sustained economic growth and thus sustained full employment.
advocated fiscal policy as the most effective tool for managing national economies.
This book by Paul Davidson, co-founder and editor of the Journal of Post Keynesian Economics
, presents a careful reading of Keynes and a sharp critique of mainstream macroeconomics as it has developed in the years since Keynes.
For political reasons, Johnson refused even to consider a tax increase (1966 was an election year), which Keynesian economics
dictated and practically every economist in the nation supported.
They have no understanding of Keynesian economics
or of how that genius demonstrated the gross stupidity of the 1930s depression.
Barro  or - more briefly - a recent "Symposium on Keynesian Economics
Today"  might be preferred.
The conservative line on Keynesian economics
was that it was inflationist, socialist, or worse.