The argument for public works in the 1930s went a good deal further than that of the present day.... more The argument for public works in the 1930s went a good deal further than that of the present day. Keynes and others were concerned with not only the impact of the multiplier process on aggregate demand, but equally with the implications for financing the expenditure. Their conclusion was of the utmost importance: that spending would pay for itself and would not ‘crowd out’. The aim of this brief paper is to restate this argument and to clarify other misconceptions about Keynes’s theory and the associated practical conclusions. Empirical data are examined to show that these conclusions were supported by outcomes. 2
In my paper I would like to contrast Lionel Robbins’s approach to monetary reform and to the idea... more In my paper I would like to contrast Lionel Robbins’s approach to monetary reform and to the ideas – public works, etc. – that henceforth would be associated with Keynes’s name. Robbins ’ gradual acceptance of the latter, which is widely recognised, is seen against a doctrinaire opposition to the former, which is rarely discussed. The context of these manoeuvres included of course the Great Depression, the collapse of the gold standard and the increasing prominence of Keynes. His attacks on gold and his goal of money managed by public authority had been prominent since the publication of the Tract on Monetary Reform. But Keynes was moving quickly in a policy and theoretical direction that members of the economics profession were unwilling to endorse. Perhaps more than any other, Robbins’s work exemplified the nature of the opposition. Up until the mid-1930s, classical doctrine was re-asserted. And it was to this period that the Essay belonged. In practice Robbins opposed tariffs and...
A number of perspectives on diagnosis and cure are emerging. Some have clung to existing doctrine... more A number of perspectives on diagnosis and cure are emerging. Some have clung to existing doctrine, most notably Tim Besley of the Monetary Policy Committee. Some blame a too lax monetary policy, particularly at the start of the 21st century. Those responsible for that monetary policy, most obviously Alan Greenspan, seek to blame an inevitable irrational exuberance on the part of the public. Most make any arguments with the benefit of hindsight.
First, the circumstance of the publication of MAK is examined. ‘Keynesianism’ was in retreat and ... more First, the circumstance of the publication of MAK is examined. ‘Keynesianism’ was in retreat and a US strand of post-Keynesian economics (PKE) was emerging as a distinct – and somewhat coherent – school of thought (I have in mind Davidson and Moore supported and encouraged – even motivated – by Hicks and Kaldor). This was successor to a number of individual contributions, not least Weintraub, Eichner and Minsky on one side of the Atlantic, and the Cambridge post-Keynesians on the other. The US strand appeared to develop ‘Keynesianism’, the individual contributions to extend the General Theory. VC demanded a return to the General Theory itself. Her approach was distinct especially given her emphasis on methodology. Underlying this methodological approach was her recognition of the necessity of a formal and substantial treatment of time. She understood and interpreted the General Theory as a theory of the macroeconomy that took time seriously. Equally, not taking time seriously was th...
In a recent article, Christopher Hood and Rozana Himaz put the recent era of austerity into histo... more In a recent article, Christopher Hood and Rozana Himaz put the recent era of austerity into historical perspective. Here, Geoff Tily offers a different analysis of the data, and argues that macroeconomic relations must also be taken into account.
A review essay on Basil John Moore, Shaking the Invisible Hand : Complexity, Endogenous Money and... more A review essay on Basil John Moore, Shaking the Invisible Hand : Complexity, Endogenous Money and Exogenous Interest Rates, Basingstoke, Palgrave Macmillan, April 2006, pp. xxvi+556.
This paper examines how the notion that Keynes took money as exogenous in the General Theory has ... more This paper examines how the notion that Keynes took money as exogenous in the General Theory has proved so durable in the post-Keynesian paradigm. This durability is despite post-Keynesians regarding Keynes as a monetary economist, rejecting the ‘Keynesian’ interpretation and basing their paradigm on the endogeneity of money. The approach is historical, through a review of the early contributions to the endogenous money literature. The key characters who attribute exogeneity to Keynes are Nicholas Kaldor, Sir John Hicks and Basil Moore. The validity of each author’s argument is examined and found wanting, though, plainly, Keynes’s position is not straightforward.
This paper seeks to bolster the view that Keynes was a monetary economist concerned primarily wit... more This paper seeks to bolster the view that Keynes was a monetary economist concerned primarily with monetary and not fiscal policy. His most fundamental policy conclusion for national economies was that the authorities could control the long-term rate of interest and should do so to promote investment, growth and employment. Keynes's theory of liquidity preference is presented as a theory of money as a store of value that leads to this fundamental policy conclusion. The theory is then applied to explain the debt management, monetary and international financial policies that were adopted in World War II. Copyright 2006, Oxford University Press.
The argument for public works in the 1930s went a good deal further than that of the present day.... more The argument for public works in the 1930s went a good deal further than that of the present day. Keynes and others were concerned with not only the impact of the multiplier process on aggregate demand, but equally with the implications for financing the expenditure. Their conclusion was of the utmost importance: that spending would pay for itself and would not ‘crowd out’. The aim of this brief paper is to restate this argument and to clarify other misconceptions about Keynes’s theory and the associated practical conclusions. Empirical data are examined to show that these conclusions were supported by outcomes. 2
In my paper I would like to contrast Lionel Robbins’s approach to monetary reform and to the idea... more In my paper I would like to contrast Lionel Robbins’s approach to monetary reform and to the ideas – public works, etc. – that henceforth would be associated with Keynes’s name. Robbins ’ gradual acceptance of the latter, which is widely recognised, is seen against a doctrinaire opposition to the former, which is rarely discussed. The context of these manoeuvres included of course the Great Depression, the collapse of the gold standard and the increasing prominence of Keynes. His attacks on gold and his goal of money managed by public authority had been prominent since the publication of the Tract on Monetary Reform. But Keynes was moving quickly in a policy and theoretical direction that members of the economics profession were unwilling to endorse. Perhaps more than any other, Robbins’s work exemplified the nature of the opposition. Up until the mid-1930s, classical doctrine was re-asserted. And it was to this period that the Essay belonged. In practice Robbins opposed tariffs and...
A number of perspectives on diagnosis and cure are emerging. Some have clung to existing doctrine... more A number of perspectives on diagnosis and cure are emerging. Some have clung to existing doctrine, most notably Tim Besley of the Monetary Policy Committee. Some blame a too lax monetary policy, particularly at the start of the 21st century. Those responsible for that monetary policy, most obviously Alan Greenspan, seek to blame an inevitable irrational exuberance on the part of the public. Most make any arguments with the benefit of hindsight.
First, the circumstance of the publication of MAK is examined. ‘Keynesianism’ was in retreat and ... more First, the circumstance of the publication of MAK is examined. ‘Keynesianism’ was in retreat and a US strand of post-Keynesian economics (PKE) was emerging as a distinct – and somewhat coherent – school of thought (I have in mind Davidson and Moore supported and encouraged – even motivated – by Hicks and Kaldor). This was successor to a number of individual contributions, not least Weintraub, Eichner and Minsky on one side of the Atlantic, and the Cambridge post-Keynesians on the other. The US strand appeared to develop ‘Keynesianism’, the individual contributions to extend the General Theory. VC demanded a return to the General Theory itself. Her approach was distinct especially given her emphasis on methodology. Underlying this methodological approach was her recognition of the necessity of a formal and substantial treatment of time. She understood and interpreted the General Theory as a theory of the macroeconomy that took time seriously. Equally, not taking time seriously was th...
In a recent article, Christopher Hood and Rozana Himaz put the recent era of austerity into histo... more In a recent article, Christopher Hood and Rozana Himaz put the recent era of austerity into historical perspective. Here, Geoff Tily offers a different analysis of the data, and argues that macroeconomic relations must also be taken into account.
A review essay on Basil John Moore, Shaking the Invisible Hand : Complexity, Endogenous Money and... more A review essay on Basil John Moore, Shaking the Invisible Hand : Complexity, Endogenous Money and Exogenous Interest Rates, Basingstoke, Palgrave Macmillan, April 2006, pp. xxvi+556.
This paper examines how the notion that Keynes took money as exogenous in the General Theory has ... more This paper examines how the notion that Keynes took money as exogenous in the General Theory has proved so durable in the post-Keynesian paradigm. This durability is despite post-Keynesians regarding Keynes as a monetary economist, rejecting the ‘Keynesian’ interpretation and basing their paradigm on the endogeneity of money. The approach is historical, through a review of the early contributions to the endogenous money literature. The key characters who attribute exogeneity to Keynes are Nicholas Kaldor, Sir John Hicks and Basil Moore. The validity of each author’s argument is examined and found wanting, though, plainly, Keynes’s position is not straightforward.
This paper seeks to bolster the view that Keynes was a monetary economist concerned primarily wit... more This paper seeks to bolster the view that Keynes was a monetary economist concerned primarily with monetary and not fiscal policy. His most fundamental policy conclusion for national economies was that the authorities could control the long-term rate of interest and should do so to promote investment, growth and employment. Keynes's theory of liquidity preference is presented as a theory of money as a store of value that leads to this fundamental policy conclusion. The theory is then applied to explain the debt management, monetary and international financial policies that were adopted in World War II. Copyright 2006, Oxford University Press.
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