Money and Government: The Past and Future of Economics
A critical examination of economics' past and future, and how it needs to change, by one of the most eminent political economists of our time
The dominant view in economics is that money and government should play only minor roles in economic life. Economic outcomes, it is claimed, are best left to the "invisible hand" of the market. Yet these claims remain staunchly unsettled. The view taken in this important new book is that the omnipresence of uncertainty makes money and government essential features of any market economy.
Since Adam Smith, classical economics has espoused non-intervention in markets. The Great Depression brought Keynesian economics to the fore; but stagflation in the 1970s brought a return to small-state orthodoxy. The 2008 global financial crash should have brought a reevaluation of that stance; instead the response has been punishing austerity and anemic recovery. This book aims to reintroduce Keynes's central insights to a new generation of economists, and embolden them to return money and government to the starring roles in the economic drama that they deserve.
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Money and Government: A Challenge to Mainstream Economics
No preview available - 2018
adaptive expectations adjustment argument assets author’s balance Bank of England Bank Rate Bank’s borrowing Britain British broad money budget capital cash cause cent of GDP central bank classical collapse Congdon consumption countries crisis current account deficit demand Depression economic economists effect equilibrium Eurozone exchange rate exports fiscal policy free trade Friedman full employment Fund global gold standard growth Ibid income increase inflation interest rates International Monetary Fund investment investors Keynes Keynes’s labour lending loans long-run macroeconomic ment mercantilist monetarism monetary policy money supply neo-classical output Phillips Curve political pre-crash price level production quantitative easing quantity of money Quantity Theory rate of interest rational expectations recession reserves Ricardo rise risk role saving sector short-run social spending stability state’s surplus target Theory of Money Tim Congdon tion transmission mechanism Treasury wage wealth