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Prime Minister John Diefenbaker central bank monetary policy was directed towards increasing the money supply to cause low interest rates, and have full employment.
The theory, set forth by economist John Maynard Keynes and his American disciples such as Alvin Hansen at Harvard, contends that unemployment is caused by insufficient aggregate demand relative to the possible aggregate supply generated by full employment.
J.M. Keynes (1936) emphasized fundamental factors of a market economy that might result in prolonged periods away from full-employment.
Examples of transitional demands would be "Employment for all" or "Housing for all," demands that sound reasonable to the average citizen, but are practically impossible for capitalism to deliver on.
Years later, Nobel Laureate Friedrich Hayek, quoted in Hayek on Hayek (Chicago: The University of Chicago Press, 1994), would claim that Beveridge's Full Employment in a Free Society was ghost-written by Nicholas Kaldor.
Full Employment in a Free Society (1944) is a book by William Beveridge, author of the Beveridge Report.