By Renaud Bellais
Public expenditures hold a crucial place within Keynesian theory. It follows that Robinson’s views on the consequences of the arms race should be reviewed, especially since the Cambridge economist was fiercely opposed to "military Keynesianism." It is therefore worth introducing military expenditures in her analysis to show their relevance and to underline their limits. Being politically dangerous and economically inefficient, these expenditures can play a major role in alleviating the deficiencies of capitalism by encouraging investments rejected or neglected by private investors, despite their key role in the long-term.