Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/277154 
Authors: 
Year of Publication: 
2009
Citation: 
[Journal:] Intervention. European Journal of Economics and Economic Policies [ISSN:] 2195-3376 [Volume:] 06 [Issue:] 1 [Year:] 2009 [Pages:] 97-118
Publisher: 
Metropolis-Verlag, Marburg
Abstract: 
Keynes's theory of investment and the economic cycle is set out. Against this theory it is argued that the current monetary policy framework is not credible. Rather, given its implicit endorsement of financial liberalisation, it is, and has proved, deeply dangerous. Keynes advocated policies aimed at setting a low long-term rate of interest. Financial liberalisation has led to the dear rates that Keynes understood as the cause of the Great Depression. The discussion also examines Keynes's vigilant approach to infl ation and argues that the inflation of the 1970s was connected with liberalisation not Keynes. The loss of the central role for investment and the pre-occupation with inflation in post-Keynesian economics is traced. Finally events from the golden age to the present debt-deflation are examined according to this perspective.
Subjects: 
monetary policy
financial liberalisation
investment
inflation
debt deflation
JEL: 
B22
B50
E40
E60
Persistent Identifier of the first edition: 
Creative Commons License: 
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Document Type: 
Article

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