Abstract
John Maynard Keynes's August 1931 essay on "The Consequences to the Banks of the Collapse of Money Values" is as pertinent to the understanding the financial crises in 2009 as when it was originally written. Keynes stressed the importance of debts being contracted in money terms, creating the possibility that a wave of "bankruptcies, defaults, and repudiations" caused by a collapse of the money value of assets - or merely the fear of such events - could "shake the capitalist order to its foundations". This paper examines Keynes's 1931 analysis and its continuing relevance to understanding the fragility of the financial system.
Original language | English |
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Title of host publication | Perspectives on Keynesian Economics |
Publisher | Springer Berlin Heidelberg |
Pages | 233-250 |
Number of pages | 18 |
ISBN (Print) | 9783642144080 |
DOIs | |
State | Published - 2011 |
Externally published | Yes |