Keynes: The Art of Choosing the Right Model - an event in memory of Mark Hayes

Introduction and Chair: Jan Toporowski (SOAS)

Speaker: Dr Matteo Iannizzotto (Associate Professor in Macroeconomics, Durham University Business School)

Discussant: Victoria Chick (UCL)

From a research perspective, this new intellectual biography of Keynes showcases several new approaches to theoretical and policy questions. The Keynesian Cross is re-interpreted in terms of expectations and integrated with the Z-D approach; the flexible prices and supply side of Keynes’s principle of effective demand are restored to students. The Great Confusion of Loanable Funds is resolved. The book shows how government has no credit limit but does have a budget constraint. The main unfinished business from Keynes’s own thought is the reform of the international monetary system, and the book sets out a reform plan for the Euro.