How Keynes came to Britain. (January 2016)

• Record Type: Journal Article
• Authors: Skidelsky, Robert
• Is Part Of: Review of Keynesian economics. Volume 4:Number 1(2016)
• Page Start: 4
• Page End: 19
• Publication Date: 2016-01
• Subjects: Keynes -- Keynesian economics -- the Great Depression -- economic thought -- history of economic thought -- macroeconomics -- monetary policy -- fiscal policy -- economic history -- the Keynesian revolution; Keynesian economics -- Periodicals; 330.15605
• DOI: 10.4337/roke.2016.01.02
• Languages: English
• ISSNs: 2049-5323

Abstract

Abstract : I explore how Keynesian ideas made their way into British public policy. I argue that the breakdown of pre-First World War macroeconomic conditions led to a 'blocked' system, where the adjustment mechanisms presupposed by classical economics were jammed, and that Keynesian economics offered an escape from this system. I explain the Keynesian response to the new problems in monetary and fiscal policy: the gold standard impeding credit control, and the tenacity of the balanced budget rule, respectively. Finally, I outline how Keynes's ideas took hold after the Great Depression via the events at the Macmillan Committee, and their policy implications.