Keynes and the Confidence Fairies

John Considine, David Duffy

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Budgetary constraints were never the primary object of policy for John Maynard Keynes. They were constraints, not objectives. However, Keynes identified the psychological channels through which budgetary discipline and other policy conventions might influence investment. He even accepted that in rare circumstances the psychological factors might overwhelm direct policy interventions. Unfortunately, the polarisation of the current debate means traditional Keynesians are unlikely to search out this aspect of his work and the confidence faeries are unlikely to read any of Keynes’s work. This article draws attention to this aspect of his work.
LanguageEnglish
Pages309-325
JournalCambridge Journal of Economics
Volume40
Issue number1
Early online date17 Dec 2014
DOIs
Publication statusPublished - 6 Jan 2016

Fingerprint

Confidence
John Maynard Keynes
Polarization
Psychological factors
Psychological
Policy intervention

Keywords

  • Expansionary fiscal contraction
  • Keynes
  • Financial Crisis
  • Economic Thought

Cite this

Considine, John ; Duffy, David. / Keynes and the Confidence Fairies. In: Cambridge Journal of Economics. 2016 ; Vol. 40, No. 1. pp. 309-325.
@article{c60965839b3a4b0380f25656b66feb8b,
title = "Keynes and the Confidence Fairies",
abstract = "Budgetary constraints were never the primary object of policy for John Maynard Keynes. They were constraints, not objectives. However, Keynes identified the psychological channels through which budgetary discipline and other policy conventions might influence investment. He even accepted that in rare circumstances the psychological factors might overwhelm direct policy interventions. Unfortunately, the polarisation of the current debate means traditional Keynesians are unlikely to search out this aspect of his work and the confidence faeries are unlikely to read any of Keynes’s work. This article draws attention to this aspect of his work.",
keywords = "Expansionary fiscal contraction, Keynes, Financial Crisis, Economic Thought",
author = "John Considine and David Duffy",
year = "2016",
month = "1",
day = "6",
doi = "10.1093/cje/beu065",
language = "English",
volume = "40",
pages = "309--325",
journal = "Cambridge Journal of Economics",
issn = "0309-166X",
number = "1",

}

Keynes and the Confidence Fairies. / Considine, John; Duffy, David.

In: Cambridge Journal of Economics, Vol. 40, No. 1, 06.01.2016, p. 309-325.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Keynes and the Confidence Fairies

AU - Considine, John

AU - Duffy, David

PY - 2016/1/6

Y1 - 2016/1/6

N2 - Budgetary constraints were never the primary object of policy for John Maynard Keynes. They were constraints, not objectives. However, Keynes identified the psychological channels through which budgetary discipline and other policy conventions might influence investment. He even accepted that in rare circumstances the psychological factors might overwhelm direct policy interventions. Unfortunately, the polarisation of the current debate means traditional Keynesians are unlikely to search out this aspect of his work and the confidence faeries are unlikely to read any of Keynes’s work. This article draws attention to this aspect of his work.

AB - Budgetary constraints were never the primary object of policy for John Maynard Keynes. They were constraints, not objectives. However, Keynes identified the psychological channels through which budgetary discipline and other policy conventions might influence investment. He even accepted that in rare circumstances the psychological factors might overwhelm direct policy interventions. Unfortunately, the polarisation of the current debate means traditional Keynesians are unlikely to search out this aspect of his work and the confidence faeries are unlikely to read any of Keynes’s work. This article draws attention to this aspect of his work.

KW - Expansionary fiscal contraction

KW - Keynes

KW - Financial Crisis

KW - Economic Thought

U2 - 10.1093/cje/beu065

DO - 10.1093/cje/beu065

M3 - Article

VL - 40

SP - 309

EP - 325

JO - Cambridge Journal of Economics

T2 - Cambridge Journal of Economics

JF - Cambridge Journal of Economics

SN - 0309-166X

IS - 1

ER -