Keynesianism And Public Investment: A Left-Keynesian Perspective On The Role Of Government Expenditures And Debt

With the successful rise of the so-called mixed economy during the early post-war period, bastard Keynesianism (to use Joan Robinson's familiar expression) ruled supreme. In contrast with present-day Chicago- style neoclassical policy nihilism, the former ideology made allowance for a positive, yet limited, scope for active government intervention in the market-place. Indeed, advocates of this hybrid Keynesianism both recognized and professed that the state could and should intervene whenever there was market failure.