Beyond Keynesianism

‘This is an important collection of papers, wide-ranging but coherently grouped around the theme of full-employment policy. As we begin to experience the limits of deregulation and privatization there is a growing interest in the possibility of a new agenda. This book makes an invaluable contribution to that discussion.’
– John Grahl, The Economic Journal

‘This volume makes two useful contributions. The empirical papers provide further evidence to undermine the laissez-faire position. The more theoretical papers add to the developing institutional oriented analyses of market economics.’
– Malcolm Sawyer, EAPE Review

‘Of especial fascination is Grabher’s analysis of how a combination of active regional policy and private entrepreneurship can help to revitalise old industrial areas.’
– Kenneth Mayhew, Journal of Public Policy

‘. . . these essays are of uniformly high quality and recommended to scholars and policymakers interested in finding solutions to the problems of employment and production that actually work.
– John L. Campbell, Contemporary Sociology

This important book goes beyond generalizations and takes a hard-headed look at the real strengths and weaknesses of Keynesian demand management and supply side economics.

Keynesianism has failed to reconcile high levels of competitiveness with full employment. This was confirmed in the 1980s by the performance of the UK, the US and West Germany. Sweeping de-regulation has not proved to be an adequate solution.

The book shows how effective supply conditions could supplement Keynesian demand management to achieve sustainable levels of high employment. The measures advocated include a system of industrial relations which allows high wages and job security in return for acceptance of a high pace of technological and organizational change; the promotion of skill development as well as intra-firm training programmes; the formation and encouragement of co-operation between different regions. It is argued that the supportive institutions, coupled with effective demand policies would succeed in marrying high employment with internationally competitive production.