Over the last couple of days we have published four guest posts by Clark Johnson on “Keynes: Evidence for Monetary Policy Ineffectiveness?”. Here you can read the paper in its entirety.
Clark, thank you for your contribution to my blog. I am sure my readers have enjoyed it as much as me.
PS here is Keynes celebrating the UK giving up the gold standard in 1931. Unfortunately at the time her wrote General Theory (1936) he had forgot about how powerful monetary policy can be and instead as Clark has so clearly demonstrated advocated the use of fiscal policy. Maybe the problem was that Keynes thought that devaluation of the pund worked through a competitiveness channel rather than through an increase in the money supply and money velocity. See more on that topic here and here.