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Reforming the World’s Money

In: John Maynard Keynes

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  • Paul Davidson

Abstract

In The General Theory, Keynes argued that if an economy was operating at less than full employment, then the nation’s central bank, while maintaining the stability of financial markets, should focus primarily on providing all the liquidity that the economy can absorb in order to reach full employment. For more than a quarter century following World War II, the major central banks around the world tried to meet the role that Keynes had prescribed for them in his General Theory.

Suggested Citation

  • Paul Davidson, 2007. "Reforming the World’s Money," Great Thinkers in Economics, in: John Maynard Keynes, chapter 10, pages 145-159, Palgrave Macmillan.
    • Handle: RePEc:pal:gtechp:978-0-230-23547-2_10
    DOI: 10.1007/978-0-230-23547-2_10
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