18 Facts About Keynesianism

Keynesianism interpreted his treatment of liquidity as implying a purely monetary theory of interest.

Keynesianism saw the economy as unable to maintain itself at full employment automatically, and believed that it was necessary for the government to step in and put purchasing power into the hands of the working population through government spending.

Keynesianism wrote that although his theory was explained in terms of an Anglo-Saxon laissez faire economy, his theory was more general in the sense that it would be easier to adapt to "totalitarian states" than a free market policy would.

Keynesianism mentions "increased public works" as an example of something that brings employment through the multiplier, but this is before he develops the relevant theory, and he does not follow up when he gets to the theory.

Keynesianism was the leader of the British delegation to the United Nations Monetary and Financial Conference in 1944 that established the Bretton Woods system of international currency management.

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Keynesianism was the principal author of a proposal – the so-called Keynes Plan – for an International Clearing Union.

Keynesianism pointed out that surpluses lead to weak global aggregate demand – countries running surpluses exert a "negative externality" on trading partners, and posed far more than those in deficit, a threat to global prosperity.

Keynesianism pointed out that the reduction of wages led to a reduction in national demand which constrained markets.

Keynesianism criticised, for example, the neoclassical assumption of wage adjustment.

Keynesianism criticised the static dimension of the theory of comparative advantage, which, in his view, by fixing comparative advantages definitively, led in practice to a waste of national resources.

Keynesianism thus proposed the search for a certain degree of self-sufficiency.

Keynesianism defends the idea of producing on national soil when possible and reasonable and expresses sympathy for the advocates of protectionism.

Keynesianism considered that quotas could be more effective than currency depreciation in dealing with external imbalances.

Keynesianism argued that Keynes regarded the class struggle carelessly, and overlooked the class role of the capitalist state, which he treated as a deus ex machina, and some other points.

Keynesianism argued that this was an unrealistic assumption about political, bureaucratic and electoral behaviour.

Keynesianism thought that if it is generally accepted that democratic politics is nothing more than a battleground for competing interest groups, then reality will come to resemble the model.

Keynesianism argued, "if you have a problem with politicians – criticize politicians, " not Keynes.

Keynesianism argued that empirical evidence makes it pretty clear that Buchanan was wrong.