Employing different meanings of classical concepts of saving, capital, investment, and money, and incorrectly attributing the assumption of full employment of labor and a world of certainty to classical analysis, John Maynard Keynes ([1936] 1974) faulted Say’s Law as irrelevant to the real world. Roy Grieve (2016) ignores previous clarifications of Keynes’s misrepresentations and misunderstandings of John Stuart Mill’s restatements of the law. He employs similar misrepresentations and misunderstandings of Mill’s explanations as Keynes did. His model of Mill’s analysis is incapable of explaining how variations in relative prices, the value of money, and interest rates coordinate production, consumption, and savings decisions in a monetary economy.

Roy Harrod (1951, p. 453) explicitly states that he “supplied a diagram purporting to reconcile the classical theory [of interest] with [Keynes's] theory, and he incorporated it in the [General Theory]-the only diagram in it!” (italics added). John M. Keynes (1936, p. 180n) himself writes: “This diagram was suggested to me by Mr. R.F. Harrod.” Furthermore, Harrod, in a letter to Ralph Hawtrey (19 June 1951) also says: “I was myself responsible for the diagram on page 180 which was an attempt to demonstrate to Maynard that his theories were not quite so out of line with the classical position as he supposed” (quoted in Warren Young 1987, p. 136). Now Rod O'Donnell (1999) claims that Harrod never supplied a diagram but only suggested how one could be drawn. Thus both Harrod and Keynes have misled us about the genesis of the only diagram in the General Theory. O'Donnell advances arguments in support of his claim which do not appear convincing.

Modern Austrian economists employ the Austrian Theory of Capital as an analytical construct with which to interpret policy-induced business cycles and suggest an appropriate remedy. The argument is that the structure of production, particularly the degree of capital intensity or “length of the production period” among different sectors of a non-collectivized economy, depends on the level of interest rates. Low interest rates encourage greater capital intensity in production while high interest rates reduce the degree of capital intensity or roundaboutness. Thus a greater capital intensity encouraged by an artificially low rate of interest created by a central bank's credit inflation must be followed by increased unemployment of labor when interest rates rise again to reflect the ensuing price inflation and the credit inflation stops. Restraint on central bank credit creation is thus prescribed as the remedy for fluctuations in output and employment in the business cycle.

Flight-Lieutenant Jerry Rawlings has presided over two distinct types of régime as far as economic policy is concerned since the overthrow of the Third Republic at the end of 1981. The first was characterised by the extensive intrusion of the state, or by those claiming to act on its behalf, in directing economic activity, notably the sale of goods and services. The other, since 1983, has witnessed greater reliance on the market freedom of individuals in both production and exchange, largely consistent with the economic liberalism prescribed by the International Monetary Fund (I.M.F.). Most analysts familiar with the evidence have concluded that the experiment during 1982–3 was an unmitigated disaster for the wellbeing of Ghanaians, and that since then the Economic Recovery Programme (E.R.P.) has successfully reversed the downward spiral and created the conditions for real income growth.

Dependency theory is a set of ideas with a strong potential for influencing policy actions in the Third World. Originally developed during the late 1960s to explain the problems of development in Latin America by scholars working in that region, the theory has attracted a great deal of attention both in the literature and in Third World countries. Though the logical consistency and empirical validity of the theory have been questioned, evidence about the influence of dependency theory on the economic policies of specific countries has been scant. In this article I provide some such evidence. I also evaluate the potential for devising viable economic policies within the theory.