More On Keeping Up The Spending

..Keynes denied that the market system had any internal mechanism for maintaining full employment. This meant that economies could drift on for years in a state of semi-slump. Governments should therefore assume responsibility for maintaining full employment. They could do this by securing enough spending power in the economy to employ all those who wanted to work. He invented macroeconomics. This was much more than just ‘sound money’: it involved fiscal and regulatory policy too.


via Robert Skidelsky – Keynes for the 21st century.

About Stephen E. McGaughey
Resident of the City of Coral Gables

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