General theory of employment-interest and money

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In the General Theory of Employment, Interest and Money, John Maynard Keynes wrote: “If the Treasury were to fill old bottles with banknotes, bury them at suitable depths in disused coal mines which are then filled up to the surface with town rubbish, and leave to the private enterprise…to dig the notes up again…there need be no more unemployment and, with the help of the repercussions, the real income of the community…would probably become a good deal greater than it is. a. Which important macroeconomic effect is Keynes discussing here? b. What does he mean by “repercussions”? c. Should he be concerned about the source of those the bank notes, taxes, borrowing or freshly printed cash? Discuss.

Reference no: EM131159516

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