Shadow of Keynes
Shadow of Keynes
"The two most important vices in the economic world we live in," Keynes writes in his closing remarks, The General Theory, "are the first where full employment is not guaranteed, the second where wealth and income distribution is arbitrary. " and lack of justice. "Concerned about unemployment and the unequal distribution of wealth, Keynes was worried, if not more, about international currency problems and" imaginative "fluctuations in the international commodity markets. Just like he did in her eyes, there can be no full employment in a market economy the countries without active state intervention also to be freed from external constraints and in particular from the restriction of having, as economics has always wanted to subordinate economic activity to the blind discipline of gold. Adjustment of standards and balance of payments. At the same time it was also necessary to solve the problems that were threatening international trade at the time and to underestimate the small investments in the poorest countries with aid programs The British proposals of 1943, to which we have to go to Keynes are very explicit in this regard Focus international discussions on four specific points:
1 monetary and exchange rate mechanisms;
2 a commercial policy framework to regulate the conditions for the exchange of goods: customs duties, subsidies, import controls, etc.
3 Production, distribution and more orderly prices of primary products to protect manufacturers and consumers from losses and the risk of extravagant market fluctuations;
4 A medium and long-term investment aid program for countries whose economic development needs require external help.
Why go back to Keynes? Perhaps simply because Keynes, in his own way, symbolized the overthrow of the ideas of the time over the intellectual influence he exerted and the prominent role he played in Bretton Woods. In fact, what Keynes denounces is not the theoretical validity of the arguments of the classics or the liberal foundations of our society, which he saw preferable to others, but above all two things: dogmatism, to say the least. The blindness of the economists who caused them to ignore social realities on the one hand, and on the other hand the vices of a liberal order that alone led the world to the crisis. It is pragmatism that urges him to reject classical theory, as well as pragmatism that urges him to resort to the state to "about", as he will say, full employment, "a broad socialization of investments" and even guarantee, if necessary, the control of capital movements, your reflection on international economic problems will not be otherwise.
There are no two Keynes, the theorist and the practitioner, the Generalnes Keynes and the Bretton Woods Keynes, one that dealt with unemployment and one that dealt with money matters. international; There is only one and the same Keynes who deals more with the same problem: economic security. For him, this meant two things: first, that economic security on the international economic scene was guaranteed so that it could be achieved within a national framework; and on the other hand, institutional regulatory mechanisms similar to those of a national framework are implemented at the international level. Hence the equally important importance he attaches to the project of creating an international institution responsible for the stabilization of raw material prices, Commod, as well as the creation of a real international monetary institution. the International Clearing Union and a real international currency. , the bench.
In summary, Keynes tackled the more general problem of unorganized international markets, and all of the problems for him were related. international problems like internal problems, monetary problems like trade problems.
Keynes' approach is torn between idealism and pragmatism without ambiguity. First, on a theoretical level, since it is about both the renewal of classic economic theory and the shaping of economic policy; second, on a practical level, because it was necessary to develop innovations and find the mechanisms that discipline the markets, and to subordinate the results to greater collective solidarity. Likewise, it would be an exaggeration to say that Keynes was heard in full or that his ideas alone were sufficient to explain the new turning point that international economic cooperation would take. As big as his personal influence or that of his ideas is, that doesn't explain everything. To your dismay, shouldn't you have joined Bretton Woods with American views, as Crotty remembers? As big as a man's ideas are, they don't just explain social change. They always fit into a certain historical context. To quote Shonfield
The fact is that if the development of capitalism from old fashion to new fashion depended only on the intellectual transition to the Keynesian system, it would have had little chance of going so far. After all, since the war we have had several occasions to see people there who believed they had penetrated Keynesian economic realities, urgently adopted a different policy, and often spoke out against it ... What characterizes the post-war period? While several independent forces have joined forces to improve the means to regulate the economy while keeping demand at a very high level, governments have also had time to examine the most appropriate interventions without causing any disaster during this Learning.
On the other hand, it is not about falling to the very opposite and seeing in this development that Shonfield only speaks of a simple adaptation of the structures to the new economic and social realities of the reproduction of capital. Keynes' ideas, like the character, deeply shaped his and our time. His influence has been considerable in the large mandarins of economic policy, even to the United States, where the government will fall victim to economists and "liberals" who join his ideas. If we sum up Keynes's contribution, we could say that he may have been able to bring the right solutions to a previously blocked society at the right time and convince a large enough number of large decision-makers. Relevance of your ideas. In this sense we can speak of the Keynesian revolution and the Keynesian model. Armed with the intellectual legitimacy Keynes would give his Liberal Hour campaign to use the title of a work by John K. Galbraith.
Shadow of Keynes
"The two most important vices in the economic world we live in," Keynes writes in his closing remarks, The General Theory, "are the first where full employment is not guaranteed, the second where wealth and income distribution is arbitrary. " and lack of justice. "Concerned about unemployment and the unequal distribution of wealth, Keynes was worried, if not more, about international currency problems and" imaginative "fluctuations in the international commodity markets. Just like he did in her eyes, there can be no full employment in a market economy the countries without active state intervention also to be freed from external constraints and in particular from the restriction of having, as economics has always wanted to subordinate economic activity to the blind discipline of gold. Adjustment of standards and balance of payments. At the same time it was also necessary to solve the problems that were threatening international trade at the time and to underestimate the small investments in the poorest countries with aid programs The British proposals of 1943, to which we have to go to Keynes are very explicit in this regard Focus international discussions on four specific points:
1 monetary and exchange rate mechanisms;
2 a commercial policy framework to regulate the conditions for the exchange of goods: customs duties, subsidies, import controls, etc.
3 Production, distribution and more orderly prices of primary products to protect manufacturers and consumers from losses and the risk of extravagant market fluctuations;
4 A medium and long-term investment aid program for countries whose economic development needs require external help.
Why go back to Keynes? Perhaps simply because Keynes, in his own way, symbolized the overthrow of the ideas of the time over the intellectual influence he exerted and the prominent role he played in Bretton Woods. In fact, what Keynes denounces is not the theoretical validity of the arguments of the classics or the liberal foundations of our society, which he saw preferable to others, but above all two things: dogmatism, to say the least. The blindness of the economists who caused them to ignore social realities on the one hand, and on the other hand the vices of a liberal order that alone led the world to the crisis. It is pragmatism that urges him to reject classical theory, as well as pragmatism that urges him to resort to the state to "about", as he will say, full employment, "a broad socialization of investments" and even guarantee, if necessary, the control of capital movements, your reflection on international economic problems will not be otherwise.
There are no two Keynes, the theorist and the practitioner, the Generalnes Keynes and the Bretton Woods Keynes, one that dealt with unemployment and one that dealt with money matters. international; There is only one and the same Keynes who deals more with the same problem: economic security. For him, this meant two things: first, that economic security on the international economic scene was guaranteed so that it could be achieved within a national framework; and on the other hand, institutional regulatory mechanisms similar to those of a national framework are implemented at the international level. Hence the equally important importance he attaches to the project of creating an international institution responsible for the stabilization of raw material prices, Commod, as well as the creation of a real international monetary institution. the International Clearing Union and a real international currency. , the bench.
In summary, Keynes tackled the more general problem of unorganized international markets, and all of the problems for him were related. international problems like internal problems, monetary problems like trade problems.
Keynes' approach is torn between idealism and pragmatism without ambiguity. First, on a theoretical level, since it is about both the renewal of classic economic theory and the shaping of economic policy; second, on a practical level, because it was necessary to develop innovations and find the mechanisms that discipline the markets, and to subordinate the results to greater collective solidarity. Likewise, it would be an exaggeration to say that Keynes was heard in full or that his ideas alone were sufficient to explain the new turning point that international economic cooperation would take. As big as his personal influence or that of his ideas is, that doesn't explain everything. To your dismay, shouldn't you have joined Bretton Woods with American views, as Crotty remembers? As big as a man's ideas are, they don't just explain social change. They always fit into a certain historical context. To quote Shonfield
The fact is that if the development of capitalism from old fashion to new fashion depended only on the intellectual transition to the Keynesian system, it would have had little chance of going so far. After all, since the war we have had several occasions to see people there who believed they had penetrated Keynesian economic realities, urgently adopted a different policy, and often spoke out against it ... What characterizes the post-war period? While several independent forces have joined forces to improve the means to regulate the economy while keeping demand at a very high level, governments have also had time to examine the most appropriate interventions without causing any disaster during this Learning.
On the other hand, it is not about falling to the very opposite and seeing in this development that Shonfield only speaks of a simple adaptation of the structures to the new economic and social realities of the reproduction of capital. Keynes' ideas, like the character, deeply shaped his and our time. His influence has been considerable in the large mandarins of economic policy, even to the United States, where the government will fall victim to economists and "liberals" who join his ideas. If we sum up Keynes's contribution, we could say that he may have been able to bring the right solutions to a previously blocked society at the right time and convince a large enough number of large decision-makers. Relevance of your ideas. In this sense we can speak of the Keynesian revolution and the Keynesian model. Armed with the intellectual legitimacy Keynes would give his Liberal Hour campaign to use the title of a work by John K. Galbraith.