Dear Monetary Policy Observer,
On June 5th, APIA senior advisor, economics, Ralph Benko penned an article in Forbes.com to celebrate the birthday of John Maynard Keynes. Given the Big Government nature of neo-Keynesism it may seem strange to hear a veteran supply-sider embrace Keynes, but Keynes was not a Keynesian. Benko makes a strong case that Keynes’s approach fits well with that of supply-sider economics:
"So why is the raven of supply-side economics like the writing desk of John Maynard Keynes? Both share a passionate dedication to high employment and the flourishing of workers. Both are grounded in pragmatism rather than stale dogmas. Both have a pragmatically friendly stance toward the state .... Both supply-side and Keynes have in common inquisitive pragmatism."
Benko also pointed out Keynes’ pragmatism fully included his various stands on monetary policy. Legislation was introduced in the last Congress to enact a Monetary Commission to take a pragmatic look at which monetary regimes were best for job creation and equitable growth. We hope that it will be reintroduced this year so that we can chart a course to equitable prosperity that can be embraced both by supply-siders and the followers of Keynes.
Happy birthday, Maynard!
American Principles In Action