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keynes

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Issue:

Business

 

Written by:

Joanne F

 

Date added:

June 20, 2013

 

Level:

University

 

Grade:

B

 

No of pages / words:

2 / 332

 

Was viewed:

4995 times

 

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Essay content:

But any view of the future based on so flimsy a foundation is liable to sudden and violent changes. And this is exactly what happened in relation to the Great Financial Meltdown. Keynes was of the opinion that if governments did not take action in this critical point we are to expect a breakdown of the existing structure, with a future we cannot predict...
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The key to Keynes was his commitment to preserving the market economy by making it work. His main insight was that it might remain a long time in a state of underemployment equilibrium, meaning the economy won’t just bounce back. The problem with financial markets, Keynes argued, was that investors were not putting their money into anything but the safest investments...
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