Monday, January 26, 2009

The Mature Keynesian Perspective

Via NYU prof Mario Rizzo, here is John Maynard Keynes of 1942, six years after The General Theory:
Organized public works, at home and abroad, may be the right cure for a chronic tendency to a deficiency of effective demand. But they are not capable of sufficiently rapid organisation (and above all cannot be reversed or undone at a later date), to be the most serviceable instrument for the prevention of the trade cycle.