Raising Keynes: A Twenty-First-Century General Theory

John Maynard Keyness' General Theory of Employment, Interest, and Money was the most influential economic idea of the twentieth century, but Stephen Marglin argues that its radical implications were obscured by his lack of mathematical tools to argue that the problem was the market itself. Marglin fills in the theoretical gaps, revealing the deeper meaning of the General Theory and substantiating Keynes' intuition that there is no mechanism within a capitalist economy that ensures full employment. He argues that fiscal policy has been relegated to emergencies and monetary policy has focused unduly on inflation, based on the false premise that the economy is self-regulating. Raising Keynes provides the foundation for a twenty-first-century macroeconomics that can respond to crises and guide long-run policy.

Format: Hardback
Length: 928 pages
Publication date: 15 June 2021
Publisher: Harvard University Press

John Maynard Keyness' General Theory of Employment, Interest, and Money was a groundbreaking economic idea that shaped the twentieth century. However, according to Stephen Marglin, Keyness' lack of mathematical tools prevented him from convincingly arguing that the market itself was the root cause of economic problems, rather than various sources of friction around its margins. Marglin fills in these theoretical gaps, revealing the deeper meaning of the General Theory. Drawing on eight decades of discussion and debate since the General Theory's publication, as well as his own research, Marglin substantiates Keyness' intuition that there is no mechanism within a capitalist economy that ensures full employment. Even if deregulating the economy could make it more like the textbook ideal of perfect competition, this would not address the problem that Keynes identified: the potential inadequacy of aggregate demand.

Ordinary citizens have paid a steep price for the distortion of Keyness' message. Fiscal policy has been relegated to emergencies like the Great Recession, with the underlying rationale being the false premise that the economy is self-regulating, making fiscal policy unnecessary and inflation beyond a modest 2 percent serving no useful purpose.

Raising Keynes provides the foundation for a twenty-first-century macroeconomics that can both respond to crises and guide long-run economic growth. By rewriting the General Theory in light of modern economic challenges, Marglin offers a fresh perspective on how to address the issues facing our economy today. His book challenges the conventional wisdom and provides a roadmap for building a more robust and sustainable economic system.

Weight: 1878g
Dimension: 167 x 241 x 56 (mm)
ISBN-13: 9780674971028