THE CONSEQUENCES OF MR KEYNES.pdf - Institute of Economic ...

QUESTIONS FOR DISCUSSION
i. Compare and contrast the Classical and Keynesian visions
of the economic order.
2. 'It may be that the presuppositions of Harvey Road were
so much of a second nature to Keynes that he did not give
the dilemma (between optimal policy choices and the
dictates of political survival) the full consideration that it
deserves' (R. F. Harrod). Discuss.
3. Analyse the differences and similarities of political competition
and market competition.
4. 'Budget deficits are more likely to result than budget surpluses
from a democratic choice process that is unconstrained
by a balanced-budget rule'. Explain and evaluate
this proposition.
5. In what ways may inflation have a disrupting effect on the
economy by destroying the co-ordination of prices?
6. Examine the role ofthe balanced-budget convention in the
workings ofthe 19th century British fiscal constitution.
7. 'The effect of the Keynesian revolution was to remove the
linchpin ofthe British fiscal constitution'. Discuss.
8. Contrast the workings in practice of the Keynesian fiscal
constitution in Britain since the end of the war with its
supposed workings in Keynesian theory.
9. Describe and evaluate the efficacy of the attempts made
to reform the workings of the fiscal system in post-war
Britain.
10. 'Sober assessment suggests that Keynesianism represents a
substantial disease that over the long run may prove fatal
to the survival of democracy'. Examine and critically
evaluate the economic foundation of this judgement.
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