The power of ideas to affect policy -- Ideas and policies that created the first global economic crisis of the twenty-first century -- Reading tea leaves to "know" the future : classical theory's ideas about a capitalist system -- A penny spent is a penny earned : Keynes's ideas on a capitalist...

This chapter explores Keynes’s monetary thought with a focus on financial instability and crises. Keynes’s early monetary work, Indian Currency and Finance (1913), shows his keen concerns for financial instabilities and his appreciation of central banks’ lender-of-last-resort role. In his...

This paper revisits Keynes's writings from Indian Currency and Finance (1913) to The General Theory (1936) with a focus on financial instability. The analysis reveals Keynes's astute concerns about the stability/fragility of the banking system, especially under deflationary conditions. Keynes's...