A time to return to Keynes

Abstract

Purpose

This paper seeks compare the current financial and economic problems with the problems facing the world economy in the 1930s.

Design/methodology/approach

The paper argues that the Great Depression and the current problems have similar causes – excessive speculation, leading to a financial collapse that then results in an economic collapse. It then looks at the work of John Maynard Keynes to help solve the current problems.

Findings

The paper advocates a large public works program plus a number of policies to help US homeowners and thereby stabilize housing prices.

Originality/value

The paper provides a way out of the current economic and financial problems, and a way to avoid another Great Depression.

Citation

Pressman, S. (2009), "A time to return to Keynes", Critical Perspectives on International Business, Vol. 5 No. 1/2, pp. 157-161. https://doi.org/10.1108/17422040910938767