The critical flaw in Keynes’s system

posted by
July 18, 2011
Ludwig von Mises Institute
by Robert P. Murphy  
Posted in Commentary

"As part of my Mises Academy class Keynes, Krugman, and the Crisis, I have reread large portions of The General Theory. In his masterpiece, Keynes erects an impressive framework on one crucial assumption: left to its own devices, the free market can get stuck in an equilibrium with very high unemployment. Although Keynes's whole edifice and critique of the 'classical economists' rests on this belief, he devotes surprisingly little time to supporting it." (07/18/11)  


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