The Keynes Solution
Description
Today's financial crisis has led to a widespread lack of confidence in the laissez faire style of economic policy. In The Keynes Solution author Paul Davidson provides insights into how we got into the crisis-but more importantly how to use Keynes economic philosophy to get out of this mess. John Maynard Keynes was committed to making the market economy work-but our current system has been a dismal failure. Keynes advocated for an interventionalist government role, in cooperation with private initiative, to mitigate the adverse effects of recessions, depressions and booms. His economic policy helped the world out of the great depression and was an important influencer in the thinking behind FDR's new deal policies. In this book Keynesian expert Davidson makes recommendations and details plans for spending, monetary policy, financial market rules and regulation, and wages-all to reverse the effects of our past policies. Keynes renewed influence can be seen everywhere: in Barack Obama's planned stimulus package, for example-and this book explains the basic tenant of Keynesian economics as well as applied solutions to today's critical situation.
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Person
Paul Davidson is Holly Chair of Excellence in Political Economy at the University of Tennessee, Knoxville. He has previously held Professorships at the University of Pennsylvania and Rutgers University. He is Editor of the Journal of Post Keynesian Economics, a former member of Brookings Economics Panel, and is the author, co-author or editor of twenty-two books and more than 200 articles. His books include Money and the Real World, Post Keynesian Macroeconomic Theory, International Money and the Real World: Economics for a Civilized Society, and Financial Markets, Money and the Real World.
Content
Chapter 1. The Power of Ideas to affect Policy * Chapter 2. Ideas and policies that created the global economic crisis * (A) lessons from The Great Depression era forgotten * (B) The belief that free markets are efficient * Chapter 3. Keynes's revolutionary ideas regarding the potential instability of a capitalist system * (A) The essence of Keynes's analysis - unemployment, liquidity, financial markets, and uncertainty * (B) Keynes's analysis attacked by McCarthyism immediately after World War II resulting in a mongrel "Keynesian" analysis combining classical theory with some of Keynes's policy suggestions * (C) Why mongrel "Keynesianism" fell out of favor * Chapter 4. The Cost to the Global Economy in forgetting Keynes * Chapter 5. Policies for Resolving The Current Economic Crisis * (A) Bailouts, Toxic Assets, and the banking system * (B) Are Bailouts desirable? * (C) A national recovery Plan to Create jobs * (D) Do we need to coordinate different national recovery plans? * Chapter 6. International Ramifications - Reforming The World's Trade and Money-Payments System * (A) International Trade Problems * (B) A New Financial Architecture * Chapter 7. The Need For Regulations of the Financial System and The Real Economy * Chapter 8. The Goals of a Civilized Economic Society
