by Alasdair MacLeod
Gold Money
This article explains the fundamental mistake behind Keynes’s General Theory, the vade mecum for all macro and mathematical economists today. It is no exaggeration to say that his casual rejection of Jean-Baptiste Say’s economic theories in his off-hand interpretation of them, that demand creates its own supply, is at the root of thew global economic and monetary crisis today.
There never could be a simple aphorism that captures the writings of Say, whose Treatise ran to six editions in his lifetime, continually expanded as his carefully reasoned analysis evolved.
There is no doubt that Keynes’s denial of the simply argued and irrefutable theories of Jean-Baptiste Say is directly responsible for today’s economic and monetary conditions.