Gravatar Keynesian economics says in a recession governments should cut taxes and increase spending.

Very simplistic and I doubt you will find that in The General Theory.

Keynes central thesis was "Expectations" - and currently they are towards inflation and falling living standards. There is no way increased spending would have a positive effect on consumers, but tax cuts might.


Gravatar TomTom-

Quite correct - Keynesian economics was never the same as Keynes's economics, having been developed by others to push a particular lefty agenda of government macroeconomic intervention.

As you will know, this divergence was originally nailed by the fabulously named Axel Leijonhufvud in his "On Keynesian Economics and the Economics of Keynes"- essential reading for those trying to rescue Keynes back in the dark days of the 70s. Must dust off my copy.




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