J. M. Keynes Foundation

In Anton Howes’ blog post for the Adam Smith Institute, Helicopters Vs Gnomes, an effective, if rather rudimentary, critique of Keynesian economics is put forward. I do not hold it against Mr Howes for supplying a rudimentary critique of Keynesian economics, seeing as most ‘Keynesians’ have a rudimentary grasp of it themselves.

Most advocates of Keynesianism will use government’s spending, taxation and borrowing powers from the lofty heights of economic command to boost aggregate demand. This is wrong. This approach to the economy requires the Treasury to have an amazing ability to command micro-economics, when in reality it can just about deal with the macro. Keynesianism is not about micro-economics. It is very much about the big, the bold and the beautiful – also known as macro-economics.

What must be continuously remembered is that most modern economic theories were created in the shadow of war and must be adaptable…

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