Today’s financial crisis has led to a widespread lack of confidence in the laissez faire style of economic policy. In The Keynes Solution author Paul Davidson provides insights into how we got into the crisis—but more importantly how to use Keynes economic philosophy to get out of this mess. John Maynard Keynes was committed to making the market economy work—but our current system has been a dismal failure. Keynes advocated for an interventionalist governmentrole, in cooperation with private initiative, to mitigate the adverse effects of recessions, depressions and booms.His economic policy helped the world out of the great depression and was an important influencer in the thinking behind FDR’s new deal policies. In this book Keynesian expert Davidson makes recommendations and details plans for spending, monetary policy, financial market rules and regulation, and wages—all to reverse the effects of our past policies. Keynesrenewed influence can be seen everywhere: in Barack Obama’s planned stimulus package, for example—and this book explains the basic tenet of Keynesian economics as well as applied solutions to today’s critical situation.

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