Abstract

Bortis discusses the principles underlying neoclassical and classical-Keynesian analyses, and singles out two important employment mechanisms which are inherent in the latter: the internal and the external employment mechanisms. The external mechanism is then used to analyse the presently existing situation at a global level, which is conflict-ridden, leads to growing inequalities, and stands in contradiction with the internal employment mechanism. In contradistinction, on the basis of the internal employment mechanism, sensible distribution and employment policy principles along classical-Keynesian lines may be formulated. However, to implement these principles successfully requires a new world economic and financial order grounded on Keynes’s Bancor.