ABSTRACT
However, political economy contradictions can be resolved, especially by means of rational
collective actions and by building more adequate common institutions (Patoma¨ki, 2013,
pp. 164-193). For instance, it is possible to build a mechanism by means of which world
trade surpluses and deficits are automatically balanced through tax-and-transfer (e.g. based on
Keynes’ idea of an International Clearing Union, the Brandt Commission’s proposals, and
other more recent proposals). These kinds of institutions can be characterised as global Keyne-
sian, framing questions of public economic policy and politics reflexively on the world economic
scale. Global Keynesianism would aim to regulate global interdependencies in such a way as to
produce stable and high levels of growth, employment, and welfare for everyone and every-
where, simultaneously. This aim requires the creation of new common institutions.
