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CRASS KEYNESIANISM

Authors


G. R. Steele is Reader in Economics at the Lancaster University Management School. His book, The Economics of Friedrich Hayek (2nd edn., 2007) is published by Palgrave Macmillan (G.Steele@lancaster.ac.uk).

Abstract

Keynesianism supports make-work schemes without regard for consumers' preferences. The impact of fiscal and monetary policy in corrupting the flow of inter-temporal production is entirely discounted. Where Keynes argued that long-term considerations should not obstruct the implementation of short-term palliatives for immediate problems, Keynesianism fosters belief in the judgement of the state across a wide range of expenditures. In effect, however, Keynesian concepts of aggregate demand and the income multiplier set no basis for sound economic policy.

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