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In the “State of Long-Term Expectations,” Keynes argued that “as the organization of investment market improves,” there was a growing risk for “the capital development of a country” to become “the by-product of the activities of a casino”. Based on your reading of section 3 and 5 of the chapter, discuss why Keynes believed the development of financial markets could make the capitalist investment more unstable. Why did Keynes anticipate the state to take “an ever greater responsibility” for directly organizing investment?

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