Financial Barriers to Demand-led Growth

Basil John Moore

Chapter 20 in Shaking the Invisible Hand, 2006, pp 454-473 from Palgrave Macmillan

Abstract: Abstract Keynes disagreed strongly with the laissez faire view that market economies possess strong homeostatic properties and if only prices were flexible would tend in the long run towards full employment equilibrium. Keynes emphasized that the future is unknowable and economic behavior nondeterministic. Continuously changing expectations of future aggregate demand (AD) and future profitability drive current investment spending, and govern current AD. He characterized agents’ expectations about future AD as “animal spirits,” self-fulfilling waves of optimism and pessimism about the unknown future state of the economy. This expectations process generates unpredictable fluctuations in future economic activity.

Keywords: Money Supply; Aggregate Demand; Full Employment; Complex Adaptive System; Bank Credit (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-51213-9_20

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230512139

DOI: 10.1057/9780230512139_20

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().