Concluding Remarks of Part I

Abstract

This chapter describes and summarizes misunderstandings about Keynes. No other economist’s articles and opinions are quoted by others with such arbitrariness as those of Keynes. Even monetarists use Keynes’s name strategically. New Keynesians are not immune from such criticism. Key concepts in The General Theory such as liquidity and confidence in the value of money are entirely neglected and/or hardly survive in their essentially static models. Such a deplorable tendency exacerbates the arrogant attitude of economists toward realities in actual economy. It is hazardous to insist that more radical monetary policy (QE policy) should be applied against disinflation and/or deflation. As discussed here in Chaps. 5 and 6, Keynes is quite prudent in his belief in the need to preserve confidence in the value of money because the scarcity of money is vital for this purpose. It is evident that today’s monetary policies are located at the opposite side of the fence to Keynes.