Criticisms of Keynes's ideas had begun to gain significant acceptance by the early 1970s, as they were then able to make a credible case that Keynesian models no longer reflected economic reality. Keynes himself included few formulas and no explicit mathematical models in his General Theory. For economists such as Hyman Minsky, Keynes's limited use of mathematics was partly the result of his scepticism about whether phenomena as inherently uncertain as economic activity could ever be adequately captured by mathematical models. Nevertheless, many models were developed by Keynesian economists, with a famous example being the Phillips curve which predicted an inverse relationship between unemployment and inflation. It implied that unemployment could be reduced by government stimulus with a calculable cost to inflation. In 1968, Milton Friedman published a paper arguing that the fixed relationship implied by the Philips curve did not exist. Friedman suggested that sustained Keynesian policies could lead to both unemployment and inflation rising at oncea phenomenon that soon became known as stagflation. In the early 1970s stagflation appeared in both the US and Britain just as Friedman had predicted, with economic conditions deteriorating further after the 1973 oil crisis. Aided by the prestige gained from his successful forecast, Friedman led increasingly successful criticisms against the Keynesian consensus, convincing not only academics and politicians but also much of the general public with his radio and television broadcasts. The academic credibility of Keynesian economics was further undermined by additional criticism from other monetarists trained in the Chicago school of economics, by the Lucas critique and by criticisms from Hayek's Austrian School. So successful were these criticisms that by 1980 Robert Lucas claimed economists would often take offence if described as Keynesians.
Criticisms of Keynes's ideas had begun to gain significant acceptance by the early 1970s as they were then able to make a credible case that Keynesian models no longer reflected economic reality Keynes himself included few formulas and no explicit mathematical models in his General Theory For economists such as Hyman Minsky Keynes's limited use of mathematics was partly the result of his scepticism about whether phenomena as inherently uncertain as economic activity could ever be adequately captured by mathematical models Nevertheless many models were developed by Keynesian economists with a famous example being the Phillips curve which predicted an inverse relationship between unemployment and inflation It implied that unemployment could be reduced by government stimulus with a calculable cost to inflation In 1968 Milton Friedman published a paper arguing that the fixed relationship implied by the Philips curve did not exist Friedman suggested that sustained Keynesian policies could lead to both unemployment and inflation rising at oncea phenomenon that soon became known as stagflation In the early 1970s stagflation appeared in both the US and Britain just as Friedman had predicted with economic conditions deteriorating further after the 1973 oil crisis Aided by the prestige gained from his successful forecast Friedman led increasingly successful criticisms against the Keynesian consensus convincing not only academics and politicians but also much of the general public with his radio and television broadcasts The academic credibility of Keynesian economics was further undermined by additional criticism from other monetarists trained in the Chicago school of economics by the Lucas critique and by criticisms from Hayek's Austrian School So successful were these criticisms that by 1980 Robert Lucas claimed economists would often take offence if described as Keynesians