"it is vital not only that you have the right tools, but also that you never lose sight of the purposes and overriding social goals of finance." This is great. However, in order for that to happen the indivisual consumer /investor sovernieghty must not be the prime philosophy, and profit- making must not be the prime drive. In the policy domain, the possibilty of speculatin in financial markets must be reduced to the minimum possible, and financial innovation must be limited to real sector's needs. in the academic domain, such values and ideas must be reflected in textbook-writing and curriculum design.
Actually, Keynes was not alone in his position on the interest rate.In The Theory of Economic Development, Joseph Schumpeter remarked that "interest acts as a tax upon profit." For an elaboratiion on this remark, see http://faculty.kfupm.edu.sa/FINEC/osama/Scumpeter%20The%20Tax-like%20Effect.pdf
Keynes was right. Imagin that all interest -based financing was abolished from the economic system, and equity- akin finacing was the only alternative. In that case an important contractual element of cost to borrowers ( the interest charges)has been removed. Consequently, return on equity will be higher, the opportunity cost of hoarding money will be higher. The financiers shall be inticed to invest more, not less!
Why did the Egyptian people rise up in spite of all of the mentioned economic"reforms"? it was because the former president, his family and his party used the "reforms" to hijack Egypt's wealth. The rent-seeking activities by the former regime were well- known. Not only that but the regime coupled the economic corruption with sever political opression. The Egyptian revolution was not just for bread. It for dignity first and for most.