Keynesian ideas in 1930s and 1970s shaped postwar economic policy.
The article discusses how Keynes' ideas in the 1930s and 1970s influenced economic policy. It argues that Keynes misinterpreted tight monetary policy due to confusion between nominal and real interest rates. This led to unnecessary hypotheses about investment demand. The postwar inflation, not the actual events of the 1930s, caused a decline in the influence of Keynesian ideas.