The book critiques monetarism and contemporary Keynesian theory, advocating a return to John Maynard Keynes' original concepts. It highlights the endogeneity of the money supply and the impact of financial innovations on monetary policy effectiveness. The author proposes incorporating selective credit controls alongside traditional Keynesian tools to maintain full employment, asserting that inflation is driven by money wages rather than aggregate supply or money.
According to Stephen Rousseas, economics cannot be separated from politics. Here, he provides theoretical background and insight into the ideology of supply-side economics, commonly referred to as Reaganomics. As a Post Keynesian, Rousseas is critical of supply-side economics and the Reagan administration's attempt to counter-revolutionise the demand-side economics of the earlier twentieth century. Originally published in 1982, this title is ideal for students of Economics and Politics, as well as the general reader interested in the subject.