The relevance of Keynes

This paper argues that the thinking of John Maynard Keynes remains highly relevant to an understanding of the financial collapse of 2007--8 and for policy measures to enable the world to escape from the 'great recession'. The essay explains the role of uncertainty in Keynes's theory, and the Keynesian case for fiscal and monetary 'stimulus'. It provides a Keynesian perspective on the reform of the world's monetary system, and concludes with reflections on the role of the state and the state of economics. Copyright The Author 2010. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved., Oxford University Press.