Keynes's Analysis of Economic Crises and Monetary Policy in the General Theory

Its Relevance after 75 Years

Bibliographic Data

ID12229372
AuthorsPeter Docherty (0000-0002-9975-6435, University of Technology Sydney, corresponding author)
Year2011
Volume23
Issue4
Pages521-535
Publication date2011-10-01
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueReview of Political Economy (JOURNAL)
Journal identifiersISSN: 0953-8259 • E-ISSN: 1465-3982
PublisherTaylor & Francis (PUBLISHER • GB)
DOI10.1080/09538259.2011.611617
OpenAlexW2048739719
LanguageEN
References cited21

This paper argues that Keynes's treatment of economic fluctuations and monetary policy in the General Theory is still relevant after 75 years. His treatment of severe economic crises provides considerable insight into the possibility of crises emanating from financial markets, and for understanding how financial disturbances may have real economic effects. Keynes's insights into the potential limitations of using monetary policy to deal with periods of crisis and how these limitations may be addressed are also shown to be relevant to the recent global financial crisis. The paper also argues that the General Theory has insights to offer on the use of Taylor rules and on the possibility of addressing persistent unemployment

Economics · Financial crisis · Financial market · General theory · Keynesian economics · Macroeconomics · Monetary policy · Relevance (law · Unemployment · Banking stability, regulation, efficiency · Economic theories and models · Economic Theory and Policy · Finance