This column proposes a new paradigm to reconcile Keynesian economics with general equilibrium theory. It suggests that, just as it sets the fed funds rate to control inflation, the Fed should set a ...

Our findings indicate that Keynes reached a turning point towards the end of 1932, meaning by this not his establishment of the theory determining the level of employment (or output), but his ...

Economica is an international journal devoted to research in all branches of economics. Theoretical and empirical articles are published from all parts of the international research community.

John Maynard Keynes revolutionized economic theory to show that government intervention can stabilize economies. Photo courtesy of Tim Gidal/Picture Post/Getty Images. Paul Solman: It is the ...