If the treasury were to fill old bottles with banknotes

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J. M. Keynes wrote.” If the Treasury were to fill old bottles with banknotes, Bury them in disused coal mines, and leave it to private enterprise to dig the notes up again, there need be no more unemployment and the real income of the community would probably become a good deal greater than it actually is “(The General Theory). Explain why Keynes’s analysis of the utility of a discretionary public-works program might be correct during a depression. How could well-designed fiscal or monetary policies have the same impact on employment while producing a larger quantity of useful goods and services?

Reference no: EM131076506

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