The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • Roger E. Backhouse
  • Bradley W. Bateman
Reference work entry


In the post-war years, Keynesianism became the label for the mixed economy, for an approach to fiscal policy that entailed fine-tuning the economy, and for the revolution in economic theory that brought macroeconomic analysis to the fore. This article debunks many of the myths that grew up around Keynes’s legacy by examining his attitude to fiscal and monetary policy over the course of his career. By differentiating what Keynes said from what his followers and his critics said after his death, it is possible to understand the broad switch to demand management during the 20th century in a clearer light.


Aggregate demand Beveridge, W. Buchanan, J. Budget deficits Cheap money Command economy Counter-cyclical policy Deficit spending Fine tuning Fiscal policy Full employment Functional finance General equilibrium Great depression Hansen, A. Harrod, R. Hayek, F. Hicks, J. Inflation IS–LM model Keynes, J. M. Keynesianism Keynesian revolution Lerner, A. Market frictions Meade, J. Microfoundations Mixed economy Monetary policy Monetary targets National debt New deal Public works Robinson, J. Salant, W. Samuelson, P. Sinking fund Social security Stagflation Sticky wages Unemployment Welfare state 

JEL Classifications

B1 B2 E12 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Roger E. Backhouse
    • 1
  • Bradley W. Bateman
    • 1
  1. 1.