ABSTRACT
While I argued there that it should not take a global financial crisis to remind us of the continued relevance of Keynes’ superior contribution, I may nevertheless use some occurrences in that crisis to highlight the superiority of Keynes’ analytical framework, including liquidity preference theory, over its competitors. Recall my critique of the Post Keynesian endogenous money approach as depicting banks as purely passive providers of credit to corporations through pre-arranged credit lines while drawing at its own reserves-overdraft at the central bank, albeit at the rate of interest as set by the monetary authorities.
