Is our prosperity derived from a continual circular flow of spending? Is it impossible for a society to increase its total savings? Can deficit spending by a government step in to replace private activity in order to maintain full employment and restore lasting economic growth? What is a liquidity trap and what does it mean for the economy? What did Keynes really mean by “in the long run, we’re all dead”?
In this EconStories mini-documentary, we explore the foundations of Keynesian economics with Keynes’ most famed biographer, Lord Robert Skidelsky.