It is often asserted that, whatever role Keynesian policies may have played in underpinning the long post-war boom, those policies are no longer relevant. In contrast this paper seeks to reassert the need for Keynesian policies in order to secure full employment. In doing so, as will be seen...

The paper points to the push for balanced budgets in many countries. It briefly reviews the rationale for balanced budgets and finds them wanting. It is argued that a balanced budget and economy operating at potential output are in generally incompatible and hence a balanced structural budget is...

The dominant view relating to unemployment and inflation is that inflation will be constant at a level of unemployment (the nonaccelerating inflation rate of unemployment, NAIRU) determined on the supply side of the economy (and in the labor market in particular). Further, the economy will tend...