Latest Issue

Bring back Keynes

Keynesian economics has been in retreat politically and theoretically for 25 years. If the Keynesians can learn from their critics and curtail their ambitions, a modest rehabilitation is now appropriate

Perhaps it is time to revive Keynesian policy. The fact that monetary policy in the US and Britain does, in practice, take into account unemployment and growth as well as inflation is taken as a sign that some secret Keynesian demand management is at work. From this point of view, the odd men out are what Anatole Kaletsky calls the “sado-monetarist” central bankers and finance ministers of continental Europe who are wedded to price stability and the Maastricht criteria. I believe that Keynesian policy does have a role to play in improving the performance and stability of economies. But this…

Register today to continue reading

You’ve hit your limit of three articles in the last 30 days. To get seven more, simply enter your email address below.

You’ll also receive our free e-book Prospect’s Top Thinkers 2020 and our newsletter with the best new writing on politics, economics, literature and the arts.

Prospect may process your personal information for our legitimate business purposes, to provide you with newsletters, subscription offers and other relevant information.

Click here to learn more about these purposes and how we use your data. You will be able to opt-out of further contact on the next page and in all our communications.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

We want to hear what you think about this article. Submit a letter to

More From Prospect