Keynes’s Evolutionary Spirit: A Philosophical Journey through His Work (Palgrave Insights into Apocalypse Economics)

This book chronicles the way Keynes’s generous philosophy of practice evolved in consonance with the needs of his epoch. From a youngster reflecting on ethics and the classics, to becoming a leading voice in both wars in terms of political philosophy and international relations, to playing the role of innovator in both probability and economics, to taking a stance as an art appreciator, Keynes’s life and multidisciplinary contributions to humankind were permeated by his philosophical milieu. However, only a flexible, dynamic, and broad philosophy could have reflected and led the economic and political events in the world of the first part of the 20th Century, which is what Keynes managed to accomplish, and that is what the book suggests. This book captures the gist of Keynes’ evolutionary philosophy for our times. The book adds an evolutionary perspective to the existing literature on Keynes. As a case in point, the theoretical foundations of both macroeconomics and laissez faire are dissected. But the book also tells the story of how Keynes’s philosophy is adapted to a convulsed world, which is akin to ours, his legacy being gifted with multiple human considerations. The book offers an outline of Keynes’s philosophical stance―also compared with those of other European thinkers―at a moment when new ethical, epistemological, economic, and political perspectives are required, especially after the crisis of 2020. The conclusion is that Keynes ́s theoretical and practical insights were far ahead of his time. Foreword Preface Acknowledgments Contents Abbreviations List of Tables 1 Overview and Introduction 1.1 Objectives and Means 1.2 A Brief Initial Description of This Book 1.3 Characteristics and Aims of the Book 1.4 Keynes the Social Scientist 1.5 Table of Contents: A Synopsis of the Chapters 1.6 Part I Keynes: The Meaning of Background: 1883–1910 1.7 Part II Keynes’s Early Activities: 1913–1935 1.8 Part III Keynes’s Middle Age Activities: 1936–1939 1.9 Part IV Keynes’s Late Activities: 1940–1946 References 2 Keynes’s Lakatosian Scientific Research Program (SRP) as Outlined in The General Theory of Employment, Interest and Money (1936) 2.1 The Great Philosophical Context as Related to Keynes’s Economic Contribution 2.2 Methodological Interlude 2.2.1 Lakatos and Scientific Research Programs 2.3 Background: Keynes’s Issues in 1936 2.4 ‘Probable’ Directions of Keynes After 1936 2.4.1 ‘Probable’ Keynes Directions: Main Paths 2.4.2 Secondary Paths 2.4.3 Non-Standard Paths 2.5 The Lakatosian Validity of ‘Probable’ Directions 2.6 Conclusions on Keynes’s Scientific Research Program Appendix 2.1 Keynes’s Complex System References Part I Keynes. The Meaning of Background (1883–1910) 3 Keynes’s Intellectual Debts and the ‘Locke Connection’ 3.1 Burke 3.2 Locke and Hume 3.2.1 Locke 3.2.2 Hume 3.3 Bentham and Mill 3.3.1 Bentham 3.3.2 John Stuart Mill and His Formidable Intellectual Context 3.4 Moore 3.4.1 Deepening Matters 3.4.2 Yet Moore and Keynes Differed Appendix 3.1: Keynes and Newton Appendix 3.2: Keynes, Ancient Greece, and the Continental Europeans References 4 Keynes’s Horizontal Connections 4.1 The ‘Apostles’ 4.2 The Bloomsbury Group 4.2.1 The Bloomsbury Group and Keynes 4.3 The Keynes Circus 4.3.1 After the Storm (1936) 4.3.2 Keynes Self-Defense in the Transition Between TM and GT 4.4 The ‘Later’ Philosophers: Russell, Wittgenstein, Popper, and Lakatos 4.4.1 Wittgenstein 4.4.2 Karl Popper 4.4.3 Lakatos Appendix 4.1 The Magic of Keynes’s Early Papers (1902–1910; 1921) References Part II Keynes’s Early Activities: 1913–1935 5 The Philosophical Foundations of The Economic Consequences of the Peace (1919): The European Keynes 5.1 Keynes’s Thinking circa 1919 5.2 The Topics in The Economic Consequences of the Peace 5.3 Literature Review of Keynes’s General Philosophy 5.3.1 A Bibliographical Summary of Keynes’s General Philosophy 5.4 The Philosophy of The Economic Consequences of the Peace: Problem, Hypothesis, Objectives 5.4.1 General Objectives of the ECP (First Chapters) 5.5 Specific Philosophical Insights from the Economic Consequences of the Peace 5.5.1 Epistemology 5.5.2 Ethics 5.5.3 Ontology 5.5.4 Political and Social Philosophy 5.6 Conclusions on the Economic Consequences of the Peace Appendix 5.1 Indian Currency and Finance (1913) Appendix 5.2 The Sequel to the Economic Consequences of the Peace (1922) Aftermath to the Treaty The Sequel References 6 The Epistemology of A Treatise on Probability (TP) (1921) 6.1 A New Conception of Probability 6.1.1 Probability 6.1.2 Reasoning in Keynes’s Approach to Probability 6.1.3 Deepening Matters for Visualizing Keynes’s Contribution 6.2 The Interlinkages and Repercussions of Keynes’s Novel Concept of Probability 6.2.1 Keynes’s Conception of Probability in Practice Appendix 6.1: A Precocious and Transient Genius: Frank Plumper Ramsey (1903–1930) References 7 The Bronze and Silver Books: A Tract on Monetary Reform (1923) and A Treatise on Money (1930) 7.1 A Tract on Monetary Reform: The Initial Exploration with Borrowed Concepts 7.1.1 The Purpose of the Tract 7.2 A Treatise on Money (1930): The Silver Book 7.2.1 Depicting the Fundamental Equations 7.2.2 Special Issues and Implications of A Treatise on Money 7.2.3 Economic History in A Treatise on Money 7.2.4 Financial Investment in the Epoch of TM Appendix 7.1: ‘The Economic Consequences of Mr. Churchill’ (1925) Further Writings on Liberal Proposals Appendix 7.2: A Letter to Roosevelt, and a Superb Transition Toward GT: ‘The Monetary Theory of Production’ (1933) Finding Gold Mines: ‘The Monetary Theory of Production’ (1933) Keynes Revisits Financial Investment Appendix 7.3: Keynes’s General: Richard Ferdinand Kahn (1905–1989) References 8 The Future as Portrayed in the ‘Economic Possibilities for Our Grandchildren’ (1930) 8.1 Predictions in ‘Economic Possibilities for Our Grandchildren’ (1930a) 8.2 Population Appendix 8.1: ‘Am I a liberal’ (1925) and ‘The End of the Laissez-Faire’ (1926) A Related Investigation Appendix 8.2: ‘Clissold’ (1927) and ‘The Means to Prosperity’ (1933) Another Reflective—Yet Purely Economic—Text References Part III Keynes’s Middle-Aged Activities: 1936–1939 9 The Philosophical Foundations of Chapter 24 of The General Theory of Employment, Interest and Money (1936) (GT); The Envisagement of Human Destiny as the Essence of Keynes’s Evolutionary Vision 9.1 Philosophy in the General Theory of Employment, Interest, and Money Especially Its Last Chapter 9.2 Key Issues in the General Theory of Employment, Interest, and Money 9.3 Specific Philosophical Insights in Chapter 24 of the General Theory of Employment, Interest, and Money 9.3.1 Epistemology 9.3.2 Ethics 9.3.3 Ontology in Keynes? 9.3.4 Political and Social Philosophy in Chapter 24 9.4 Further Issues and Related Chapters in The General Theory of Employment, Interest and Money 9.5 Conclusions on the Visionary Chapter of the Golden Book Appendix 9.1: ‘The General Theory of Employment’ (1937) Appendix 9.2: The Immediate and Unfavorable Reactions to The General Theory of Employment, Interest and Money References 10 Confirming Robinson’s Statement on Keynes’s Rejection of the Classical Economy and His Immediate Orthodoxy 10.1 Keynes’s Core Revisited2 10.1.1 The Classical (and Neoclassical) Versus Keynes’s Core 10.2 The Initial Orthodox Post Keynesianism Revisited 10.3 The Core of the Monetarist School 10.3.1 Definitions and Objectives 10.3.2 Methodology 10.3.3 Institutions 10.3.4 Behavior of Agents 10.4 The Core of the Neoclassical Synthesis 10.4.1 Definitions and Objectives 10.4.2 Methodology 10.4.3 Institutions 10.4.4 Behavior of Agents 10.5 The Core of New Classical Macroeconomics 10.5.1 Definitions and Objectives 10.5.2 Methodology 10.5.3 Institutions 10.5.4 Behavior of Agents 10.6 The Core of General Disequilibrium 10.6.1 Definition and Objectives 10.6.2 Methodology 10.6.3 Institutions 10.6.4 Behavior of Agents 10.6.5 A note on New Orthodox Keynesian Economics and Heterodox Post-Keynesian Economics 10.7 Conclusions on the Former Scientific Research Programs 10.7.1 Final Remarks on Scientific Betraying Appendix 10.1 ‘To Milton Friedman: A Rebuttal on the Significance of Macroeconomics’ (A Fictional Confrontation, Written By the Author Using the Imagined Pen of John Maynard Keynes) References Part IV Keynes’s Later Activities: 1938–1946 11 A Philosophical Autobiography: ‘My Early Beliefs’ in Two Memoirs (1938, 1949) 11.1 Being Good and Doing Good Revisited 11.2 Civilization 11.3 Additional Considerations 11.4 ‘Dr. Melchior. A Defeated Enemy,’ and a BBC Broadcasting Appendix 11.1 The World in Their Hands: Keynes and Nietzsche on Elitism An Appendix on Appendix 11.1.1 Opinions on Nietzsche Himself References 12 ‘How to Pay for the War’ and the World Economy 12.1 Flipping the Coin: Inflation 12.2 International Credits: Britain in the Middle of the Road 12.3 Reinventing the Post-War International Financial System: Settlement Systems (Bancor and ICU) and Institutions 12.4 Related Topics 12.4.1 The White Paper 12.5 Conclusions on Keynes the Internationalist Appendix 12.1: Keynes, Harrod, and Sen on Development Roy F. Harrod Amartya Sen Appendix 12.2 Keynes’s Empiricism: National Accounts and His Reasonable View of Econometrics Realism and Econometrics Mr. Tinbergen and Followers Appendix 12.3: The Arts and CEMA ‘But Money Is the Means...’ References 13 Conclusions on Keynes’s Legacy 13.1 The Conclusion Is an Integration of Insights 13.2 A Personal Interpretation 13.3 Probable Opposing Views 13.4 Probable New Avenues for Research Appendix 13.1: Uncertainty Revisited and the Force of New Interpretations: Keynes’s Relevance in an Epoch Characterized by Recurrent (Financial) Crises Preamble: From Keynes to the Modern World (1990–2008) The Crises of the 1990s and 2000s and the Generation Models Current Policy Dilemmas I: The Minsky Moment Current Policy Dilemmas II: Modern Views on the Financial Crisis of 2008. Revisiting Keynes Enter Keynes Epilog: Keynes’s Generosity Demands Faithfulness Based on Understanding References References Index ?Jesús Muñoz Bandala has written a remarkable work of scholarship.? {u2014}G. C. Harcourt, Honorary Professor, School of Economics, UNSW, Sydney This book chronicles the way Keynes{u2019}s generous philosophy of practice evolved in consonance with the needs of his epoch. From a youngster reflecting on ethics and the classics, to becoming a leading voice in both wars in terms of political philosophy and international relations, to playing the role of innovator in both probability and economics, to taking a stance as an art appreciator, Keynes{u2019}s life and multidisciplinary contributions to humankind were permeated by his philosophical milieu. However, only a flexible, dynamic, and broad philosophy could have reflected and led the economic and political events in the world of the first part of the 20th Century, which is what Keynes managed to accomplish, and that is what the book suggests. This book captures the gist of Keynes{u2019} evolutionary philosophy for our times. The book adds an evolutionary perspective to the existing literature on Keynes. As a case in point, the theoretical foundations of both macroeconomics and laissez faire are dissected. But the book also tells the story of how Keynes{u2019}s philosophy is adapted to a convulsed world, which is akin to ours, his legacy being gifted with multiple human considerations. The book offers an outline of Keynes{u2019}s philosophical stance{u2014}also compared with those of other European thinkers{u2014}at a moment when new ethical, epistemological, economic, and political perspectives are required, especially after the crisis of 2020. The conclusion is that Keyneśs theoretical and practical insights were far ahead of his time. Jesús Muñoz-Bandala holds a PhD in Economics from Lancaster University, UK, was a visiting researcher in Georgetown University, USA, and teaches and conducts research in Mexico City. He publishes on the legacy of Keynes, Marx, Nietzsche, and Friedman but also on economic philosophy, macroeconomics, international finance, and migration with a focus on humankind amelioration "Jesús Muñoz Bandala has written a remarkable work of scholarship." --G. C. Harcourt, Honorary Professor, School of Economics, UNSW, Sydney This book chronicles the way Keynes's generous philosophy of practice evolved in consonance with the needs of his epoch. From a youngster reflecting on ethics and the classics, to becoming a leading voice in both wars in terms of political philosophy and international relations, to playing the role of innovator in both probability and economics, to taking a stance as an art appreciator, Keynes's life and multidisciplinary contributions to humankind were permeated by his philosophical milieu. However, only a flexible, dynamic, and broad philosophy could have reflected and led the economic and political events in the world of the first part of the 20th Century, which is what Keynes managed to accomplish, and that is what the book suggests. This book captures the gist of Keynes' evolutionary philosophy for our times. The book adds an evolutionary perspective to the existing literature on Keynes. As a case in point, the theoretical foundations of both macroeconomics and laissez faire are dissected. But the book also tells the story of how Keynes's philosophy is adapted to a convulsed world, which is akin to ours, his legacy being gifted with multiple human considerations. The book offers an outline of Keynes's philosophical stance--also compared with those of other European thinkers--at a moment when new ethical, epistemological, economic, and political perspectives are required, especially after the crisis of 2020. The conclusion is that Keynes ́s theoretical and practical insights were far ahead of his time. Jesús Muñoz-Bandala holds a PhD in Economics from Lancaster University, UK, was a visiting researcher in Georgetown University, USA, and teaches and conducts research in Mexico City. He publishes on the legacy of Keynes, Marx, Nietzsche, and Friedman but also on economic philosophy, macroeconomics, international finance, and migration with a focus on humankind amelioration This book chronicles the way Keyness generous philosophy of practice evolved in consonance with the needs of his epoch. From a youngster reflecting on ethics and the classics, to becoming a leading voice in both wars in terms of political philosophy and international relations, to playing the role of innovator in both probability and economics, to taking a stance as an art appreciator, Keyness life and multidisciplinary contributions to humankind were permeated by his philosophical milieu. However, only a flexible, dynamic, and broad philosophy could have reflected and led the economic and political events in the world of the first part of the 20th Century, which is what Keynes managed to accomplish, and that is what the book suggests. This book captures the gist of Keynes evolutionary philosophy for our times. The book adds an evolutionary perspective to the existing literature on Keynes. As a case in point, the theoretical foundations of both macroeconomics and laissez faire are dissected. But the book also tells the story of how Keyness philosophy is adapted to a convulsed world, which is akin to ours, his legacy being gifted with multiple human considerations. The book offers an outline of Keyness philosophical stancealso compared with those of other European thinkersat a moment when new ethical, epistemological, economic, and political perspectives are required, especially after the crisis of 2020. The conclusion is that Keyness theoretical and practical insights were far ahead of his time. Jesus Munoz-Bandala holds a PhD in Economics from Lancaster University, UK, was a visiting researcher in Georgetown University, USA, and teaches and conducts research in Mexico City. He publishes on the legacy of Keynes, Marx, Nietzsche, and Friedman but also on economic philosophy, macroeconomics, international finance, and migration with a focus on humankind amelioration This book chronicles the way Keynes's generous philosophy of practice evolved in consonance with the needs of his epoch. From a youngster reflecting on ethics and the classics, to becoming a leading voice in both wars in terms of political philosophy and international relations, to playing the role of innovator in both probability and economics, to taking a stance as an art appreciator, Keynes's life and multidisciplinary contributions to humankind were permeated by his philosophical milieu. However, only a flexible, dynamic, and broad philosophy could have reflected and led the economic and political events in the world of the first part of the 20th Century, which is what Keynes managed to accomplish, and that is what the book suggests. This book captures the gist of Keynes' evolutionary philosophy for our times. The book adds an evolutionary perspective to the existing literature on Keynes. As a case in point, the theoretical foundations of both macroeconomics and laissez faire are dissected. But the book also tells the story of how Keynes's philosophy is adapted to a convulsed world, which is akin to ours, his legacy being gifted with multiple human considerations. The book offers an outline of Keynes's philosophical stance - also compared with those of other European thinkers - at a moment when new ethical, epistemological, economic, and political perspectives are required, especially after the crisis of 2020. The conclusion is that Keynes ́s theoretical and practical insights were far ahead of his time