Bretton Woods *was* a system of demand management - to defend fixed exchange rates (failure led to devaluation). 

Friedman argued that flexible exchange rates would allow each country to use demand management to pick its own policy-determined point on its Phillips curve.

RL

Leeson, R. 2003. *Ideology and the International Economy: The Decline and Fall of Bretton Woods* Palgrave Macmillan. 

  

----- Original Message -----
From: "M.E.G.M.Rol" <[log in to unmask]>
To: [log in to unmask]
Sent: Thursday, 10 April, 2014 12:24:13 PM
Subject: Re: [SHOE] Critiques of Keynesian Economics and the Stimulus

The general ideas about what Keynes thought when it comes to fiscal stimulus and demand management seem to have originated by people (politicians? economists?) who did not read The General Theory or anything else by Keynes. 

Keynes certainly did not defend demand management. That would run counter the heart of his favorite child, the Bretton Woods System. He saw instability as an important source of social costs, in the form of a risk premium. Therefore he would strongly object to discretionary fiscal policy, as it further would destabilize - not stabilize - the economy.Mario Rizzo's article on american.com, that we were sent a link of, says this in essence too, where it stresses that Keynes saw timing problems with such policies.


There is a very illuminating interpretation of Keynesian economics by someone who did read him, and very thoroughly so: Alan Meltzer, see his (1988) "Keynes' monetary theory, a different interpretation". CUP.


Menno Rol
University of Groningen
University of Twente.


On 09-04-14, Steve Kates  <[log in to unmask]> wrote:
> 
> 
> 
> 
> I am
> doing some work on Keynesian economics in the period following the Global
> Financial Crisis. It just may be that I do not know where to look but I am
> having trouble finding articles of any kind criticising Keynesian models and
> the theory behind public sector spending and the stimulus. Can anyone help?
> 
>  
>  
>  
> And as
> an additional query, although Mises, Hayek and Friedman are seen as "anti-Keynesian" whatever that may mean, again there seems to be a dearth of articles by them critical
> of Keynesian theory as it relates to public sector spending and the stimulus.
> So again, can anyone help?
>  
>  
>  
> Responses
> both online and offline would be greatly appreciated.
>  
>  
>  
> Steve
> Kates
>  [log in to unmask]
> 
> 
> -- 
>  
> Dr Steven Kates
> Associate Professor
> School of Economics, Finance
>  and Marketing
> RMIT University
> Building 80 
> Level 11 / 445 Swanston Street
> Melbourne Vic 3000
> 
> Phone: (03) 9925 5878
> 
> Mobile: 042 7297 529
> 
> 
>  
>  
>