Keynes and Myself

Lecture given at the Winton Institute for Monetary History, Oxford, 18 October 2010



The heart of the Keynesian message is the need for demand management by monetary and fiscal means to counteract seriously deficient demand. The unemployment of the 1980s had at its heart union monopoly and was accompanied initially by double digit inflation. Keynesian demand management would have made no sense. The situation is now totally different when the credit crunch has brought on genuine demand deficiency. But Keynes left unsolved the role, if any of the budget balance. It is not good enough to say that ‘growth’ will take care of that too.