Keynes’s General Theory After 75 Years: Chapter 24 and the Character of ‘Keynesian’ Policy*

Abstract

The Great Financial Crisis led to a revival of interest in ‘Keynesian’ economic policy, understood as temporary, debt‐financed fiscal activism in response to a short‐run, albeit particularly deep, macroeconomic contraction. But Keynes’s theory led him to diagnose involuntary unemployment as a long‐run problem, and one for which competition (via wage and price flexibility) was not a solution. Consequently, his policy proposals were more far‐reaching than short‐run fiscal activism. The final chapter of The General Theory provides the appropriate point of departure for reflecting on the difference between Keynes’s policy position and what later came to be regarded as Keynesian policy.

Avrupa Birliği Üyesi Ülkelerde Kamu Borcu ve Ekonomik Büyümenin Mekânsal Analizi

“…Ayrıca Keynes, cari harcamaların bütçe açıkları ile finansmanına karşı çıkarken, kamu yatırımlarının kısmen borçlanma ile finanse edileceğini ve projenin hizmet ömrü boyunca borçların geri ödenmesine katkı sağlayacağını belirtmiştir (Brown-Collier ve Collier, 1995). Keynes, hükümetin sermaye harcamalarını borçla finanse etmesi gerektiğini savunarak, borçla finanse edilen cari harcamalara ve gelecekte borcun kapatılmasına yardımcı olacak gelir ve varlık artışı yaratmayan ölçüde artan kamu borcuna da karşı çıkmıştır (Aspromourgos, 2012). Keynesçi görüş, genişletici maliye politikasının yol açtığı bütçe açıkları ve devlet borcunun ekonomide tamamlayıcı etki (crowding in) oluşturacağını ve özel kesimin iyimserlik algısını artırarak yatırımların destekleneceğini savunmaktadır (Misztal, 2010).…”

The Past and Future of Keynesian Economics: A Review Essay

“…That there is a disjunction between Keynes's policy views and what became 'Keynesian' economic policy in the post-war decades is not a new idea. I have elsewhere made my own effort to show the distance between the two (Aspromourgos 2012). Rivot rightly emphasizes that Keynes's views entail 'state intervention … much more comprehensive than counter-cyclical schemes and deficit spending'; 'prevention [of unemploy-ment] … instead of cure'; 'focus on …investment … rather than … consumption'; 'and, above all, a focus on long-term schemes' (231).…”

Effectiveness of public policy in reviving the COVID‐19 hit economy: Evidences from Kerala, India

“…Historically speaking, when the great depression wrecked the world economy in an unparalleled way, fiscal policies, as proposed by Keynes, were effectively put in place to revive the economies. This was followed by a surge in discussions by Keynesian economists who argue that government intervention is necessary to stabilize the booms and busts in the economic activities (Aspromourgos, 2012 ; Jahan and Mahmud, 2014 ). Thus, government intervention started to be seen as an integral element of revival mechanisms for the economies plunged into crisis.…”