Keynes as the Einstein of Economic Theory

Abstract

�� This article seeks to provide a new perspective on Keynes by emphasizing the link between the General Theory and Einstein’s relativity theory. Although some economists have suggested such a link, no economist has fully explored it in the literature. This article holds that there are significant analogies between the two theories both in terms of general worldview and specific methodological principles. One can argue, for example, that, in line with Einstein’s relativity theory, Keynes subscribes to an anti-atomist stance and shows that time plays an essential role in economics. In my view, the advantage of adopting this approach to Keynes is twofold. One is that the General Theory no longer appears as the work of an isolated theorist looking for an idiosyncratic or ad hoc way out of the difficulties of the old paradigm; it becomes instead the coherent product of a new stage in the evolution of economic analysis, influenced by the conceptual changes brought about by physics, the most advanced theoretical science. The other advantage of this approach is that it places the role of Einstein’s theory in the right perspective. It is a bit odd that one of the most significant intellectual achievements of humankind has not yet been recognized as a major influence on economics, despite the latter’s age-old acquaintance with physics.