2007 | OriginalPaper | Buchkapitel
Reforming the World’s Money
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In The General Theory, Keynes argued that if an economy was operating at less than full employment, then the nation’s central bank, while maintaining the stability of financial markets, should focus primarily on providing all the liquidity that the economy can absorb in order to reach full employment. For more than a quarter century following World War II, the major central banks around the world tried to meet the role that Keynes had prescribed for them in his General Theory.