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Global imbalances, monetary disorder, and shrinking policy space: Keynes's legacy for our troubled world

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  • Anna M. Carabelli

    (Università del Piemonte Orientale, Italy)

  • Mario A. Cedrini

    () (Università del Piemonte Orientale, Italy)

Abstract

The paper aims at showing that revisiting Keynes's early writings on international economic relations and some less well-known episodes of his economic diplomacy, with special attention being paid to the methodological issues involved, may disclose useful insights in understanding the features of his desired new global order. We contrast the three main pillars of Keynes's vision as detected in this revisitation (coordinated multilateral responses to global imbalances, a rational international monetary regime, and enhanced policy space) with the major shortcomings of the current non-system, and show the continuing relevance not only of Keynes's specific proposals for global reform, but also, and most importantly, the legacy of his way of reasoning about international economic relations.

Suggested Citation

  • Anna M. Carabelli & Mario A. Cedrini, 2010. "Global imbalances, monetary disorder, and shrinking policy space: Keynes's legacy for our troubled world," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 7(2), pages 303-323.
  • Handle: RePEc:elg:ejeepi:v:7:y:2010:i:2:p303-323
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    References listed on IDEAS

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    5. Philip Arestis & Malcolm Sawyer, 2008. "A critical reconsideration of the foundations of monetary policy in the new consensus macroeconomics framework," Cambridge Journal of Economics, Oxford University Press, vol. 32(5), pages 761-779, September.
    6. David H. Romer, 2000. "Keynesian Macroeconomics without the LM Curve," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 149-169, Spring.
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    Cited by:

    1. repec:sae:reorpe:v:49:y:2017:i:4:p:633-649 is not listed on IDEAS
    2. Mario A. Cedrini & Roberto Marchionatti, 2017. "On the Theoretical and Practical Relevance of the Concept of Gift to the Development of a Non-imperialist Economics," Review of Radical Political Economics, Union for Radical Political Economics, vol. 49(4), pages 633-649, December.
    3. Anna M. Carabelli & Mario A. Cedrini, 2010. "“Veiling The Controversies with Dubious Moral Attitudes”? Creditors and Debtors in Keynes’s Ethics of International Economic Relations," Working Papers 127, SEMEQ Department - Faculty of Economics - University of Eastern Piedmont.
    4. Lino Sau, 2015. "Do the International Monetary and Financial Systems Need More Than Short-Term Cosmetic Reforms?," International Journal of Political Economy, Taylor & Francis Journals, vol. 44(4), pages 325-340, October.
    5. Anna Carabelli, 2012. "A new methodological approach to economic theory: what I have learnt from 30 years of research on Keynes," Chapters,in: Keynes’s General Theory for Today, chapter 5, pages 79-97 Edward Elgar Publishing.
    6. Paolo Paesani & Annalisa Rosselli, 2014. "The Case for a Supra-national Control on Commodities in the post WWII World: Novel Perspectives from FAO and Kaldor Archives," HISTORY OF ECONOMIC THOUGHT AND POLICY, FrancoAngeli Editore, vol. 2014(1), pages 5-30.
    7. Carabelli, Anna & Cedrini, Mario, 2014. "Not Beautiful, not Just, not Virtuous; 'And It Doesn't Deliver the Goods'. Capitalism and “Fear of Goods” in Keynes's Thought," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201438, University of Turin.

    More about this item

    Keywords

    John Maynard Keynes; international economic order; Bretton Woods II;

    JEL classification:

    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology

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