Chapter 11: What’s wrong with Keynesian economics?
The failure of Keynesian economics is part of a broader picture of the failure of fiscal and monetary policymaking as a whole. Central banks and treasuries have been unable to deliver that improvement in the stability of output and price levels that had been hoped for. It is simply the problem of the distribution of knowledge. Centralized fiscal and monetary organs of government lack the information required to manipulate successfully aggregate demand in a market economy. Accordingly, we shall have to look again at arrangements consistent with the dispersed nature of economic information:for money, a consideration of commodity reserve systems, or perhaps competing currencies;for fiscal policies, a return to the principle of balanced budgets.
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.