Keynesian Economics will Die Where it was Born

This is an interesting little article from Blomberg. I suspect that, despite all evidence to the contrary, Keynesian economics will not die in this crisis for the simple fact that, if you are Keynesian economist and your prescription doesn’t work, you just claim that they didn’t have enough deficit spending—a stance any politician would love.

The Keynesian consensus is that things would have been far worse without the stimulus provided by government. And if the economy isn’t pumped up with inflated demand, it will collapse back into recession. If it’s not working, that just proves the stimulus should be even larger.

It is the argument quacks always push: If the medicine isn’t working, increase the dosage.

Advertisements
This entry was posted in great britain, keynes, keynesian economics. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s