June 26, 2010
Today's G-20 meeting has been advertised as a showdown between the U.S. and Europe over more spending "stimulus," and so it is. But the larger story is the end of the neo-Keynesian economic moment, and perhaps the start of a healthier policy turn.
For going on three years, the developed world's economic policy has been dominated by the revival of the old idea that vast amounts of public spending could prevent deflation, cure a recession, and ignite a new era of government-led prosperity. It hasn't turned out that way.
Now the political and fiscal bills are coming due even as the U.S. and European economies are merely muddling along. The Europeans have had enough and want to swear off the sauce, while the Obama Administration wants to keep running a bar tab. So this would seem to be a good time to examine recent policy history and assess the results.
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3 comments:
Spyridon D. Tsamaidis wrote,
- It seems , we,Greeks, have made our mark by adding one more term in financial jargon, the "Grecian bath"....!
On the other hand, to paraphrase a Greek philosopher, Politicians should be Historians rather than Pholosophers......
- Reagonomics and Thacherism should be coming back after a "hot keynesian bath"........
But, don't utter a word of thet to Greek Politicians......
What if there hadn't been any stimulus plan? What if there hadn't been any state intervention in American banks and other financial institutions in 2010 and 2011?
Spyridon D.Tsamaidis wrote:
To: Απόστολος Ρήγας,
- There was NOT any State intervention in SELECTED Banks and Institutions........
- What's the answer ??
- Perhaps,
- If you owe too much to too many then you deserve to be saved ???
- pity the little guy......
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