Keynes and the Planned Economy
Keynesianism, said Richard Kahn recently, is in danger of becoming a dirty word. The mismanagement of the British economy is laid at Keynes’s door long after his death. Was he not the man, in the words of Brendan Bracken, ‘who made inflation respectable’? Who but Keynes is to be blamed for the ‘mistaken’ belief in budget deficits; in fine tuning; in a simplistic approach to demand management? Who turned our attention away from the quantity of money? Who killed the gold standard? Who destroyed belief in the good old automatic regulators and left us at the mercy of political misjudgement and cowardice? Above all, who opened the door to a steady growth of government intervention in economic affairs and with it an increasing invasion of individual rights and liberties?
KeywordsMonetary Policy Central Bank Money Supply Full Employment Demand Management
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