Review of The Keynes Solution: The Path to Global Economic Prosperity

Paul Davidson, The Keynes Solution: The Path to Global Economic Prosperity, Palgrave Macmillan 2009, 196 pages

John Maynard Keynes (1883-1946) argued, contrary to the prevailing economic ideas of his time, that economies may not be self-equilibrating and that a lack of effective demand and employment which could arise could be offset by the injection of public expenditure. Paul Davidson in his new book encapsulates this thought with the phrase "a penny spent is a penny earned". Underlying the

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