January 08, 2009

Indeed what would Keynes be saying?

Sir we must be grateful for Peter Clarke’s very enjoyable “In the long run we are all dependent on Keynes” January 8, not the least for the timely reminder that “the General Theory had advocated regulating economy through investment, not consumption”.

It would be interesting to speculate about whether Keynes would have repeated his “I was the only non-Keynesian there” if witnessing how his name is now used to support the build-up of US public debt in order to create bailouts and stimulus packages to save the world from a monstrous depression, given the extremely high stake of said debt becoming so unsustainably large to cause the mother of all meltdowns.