ABSTRACT
Initially, the atmosphere was less charmed in the US. President Franklin Roosevelt was not impressed with Keynes when he saw him at the White House in 1934. The New Deal, started in 1933, was US President Roosevelt's package for recovery from the Great Depression. The package was surprisingly 'Keynesian' even though the General Theory had not been written yet. Even when Keynesian views reigned supreme, there were a few prominent economists who were not in agreement with Keynesian policy. The diagnosis of what was wrong, of course, differed widely. Many believed that it was the interpretation of Keynes that was wrong rather than his formulations. The curve, therefore, became a part of the extended Keynesian model. Apart from all the revision in economic theory that it brought or would bring later, it revealed some unsuspected features of our political economy. Faith in Keynesian policy waned significantly in the late 1970s.
