Gosling's Grouse: Theoretically speaking

GOSLING'S GROUSE

It is 80 years since Keynes wrote his celebrated book The General Theory of Employment, Interest and Money, which has been the basis for much of modern economics ever since.

With the global financial crisis seemingly behind us, many of the lessons that were being relearned from Keynes’ book have been consigned to the classroom or lecture hall. But one lesson on the psychology of investment  should perhaps be dusted down and pinned to the walls of professional  and private investors alike. Keynes declared: “The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelope our future.” In an era of greater regulation, a 24-hour news culture, and the ability of clients to check the value of their investments as...