From Old to New Neoclassical Synthesis: A Literature Review

In this study, the major theoretical developments in macroeconomics in the last century are summarized. The crises in the economy in every period have led to questioning of the dominant theory in economics. Following the publication of The General Theory by Keynes, two consensuses which are called old and New Neoclassical Syntheses have been formed. Both syntheses become subject of criticism after structural crises of capitalism. This study is an attempt to understand the inability of old and the New Neoclassical Syntheses against crises, through main arguments of these two syntheses.