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.