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This book describes the international context and some of the factors that have weakened the influence of Keynesian economic thought. It illustrates economic responses offered by the new Keynesian school and the alternative perspective on the global crisis presented by the monetary circuit theory, with a special emphasis on Minsky’s financial instability hypothesis. The authors present a commentary on Keynes’s General Theory with an emphasis on his theory of the scarcity of capital, his analysis of the change in the structure of costs, and straightforward recommendation for a policy marked by very low interest, which he felt was needed to maintain full employment. Additionally, the book discusses major changes in the cost structure of globally active companies, resulting from the extremely intense international capital flows over the last three decades. The authors point out the need to redefine the open economy macroeconomics model, switching it from a world consisting of two major developed open economies to one consisting of two major open economies, one of which is developed and the other is developing.
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SPRINGER BRIEFS IN ECONOMICS
Fikret Čaušević
The Global Crisis of 2008 and Keynes’s General Theory
SpringerBriefs in Economics
More information about this series at http://www.springer.com/series/8876
Fikret Čaušević
The Global Crisis of 2008 and Keynes’s General Theory
123
Fikret Čaušević School of Economics and Business University of Sarajevo Sarajevo Bosnia-Herzegovina
ISSN 2191-5504 ISBN 978-3-319-11450-7 DOI 10.1007/978-3-319-11451-4
ISSN 2191-5512 (electronic) ISBN 978-3-319-11451-4 (eBook)
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The outstanding faults of the economic society in which we live are its failure to provide for full employment and its arbitrary and inequitable distribution of wealth and incomes. John Maynard