Post-Keynesian Policies for Emerging Economies: From ‘The End of Laissez-Faire’ to the end of Neoliberalism?

This article revisits John Maynard Keynes’ critique of laissez-faire and his proposal for a managed capitalism, interpreting it through a Post-Keynesian lens with particular attention to emerging market economies (EMEs). It argues that the ‘socialization of investment’ entails a permanent and active role for the State in stabilizing expectations, sustaining effective demand, and promoting structural change. First, it reconstructs Keynes’s rejection of economic liberalism and his conception of a monetary economy characterized by uncertainty, expectations, and the non-neutrality of money. Second, it draws on Post-Keynesian contributions to show that Keynesian policies should be understood not merely as countercyclical tools, but as a broader institutional framework in which fiscal, monetary, and financial policies continuously shape investment and growth dynamics. Third, it examines the constraints EMEs face due to financial globalization, currency hierarchy, and volatile capital flows, which limit policy autonomy. The article argues that a coordinated policy mix — combining fiscal, monetary, exchange-rate, and regulatory instruments, alongside capital controls and regional financial arrangements — is necessary to expand policy space and support development objectives.