In the wake of the financial crisis of 2007-8 academic as well as non-academic interest in the economic thought of John Maynard Keynes was revived. The notion of a 'liquidity trap', interpreted as a zero bound of the (short-term) nominal rate of interest, is seen as one of Keynes's important and...

The recent global financial crises has caused renewed interest in the economic theories of John Maynard Keynes. In the general public and parts of academe Keynes is seen as the one economist who had very clear knowledge of the instability of markets, the volatility of economic activity and the...