Uneven Development and the Destabilization of the North: a Keynesian view

Can Keynesian theory illuminate the questions of rising North–South trade in manufacturing, industrial relocation from North to South, rising wage inequality and unemployment in the North, and the consequent breakdown of Northern labour movements as effective political forces? I think so. Indeed I will argue here that the main relevance of Keynesian theory today may lie in its capacity to capture the dynamics of the North–South relationship, and especially the influence of Northern macroeconomic policy and Northern business cycles on industrial trading patters.