Conversation

The hypocrisy of fiscal economics:

When there is a crisis in the real economy, we are told austerity is needed to restore confidence & encourage growth - the neo-classical economic solution.

When there is a crisis in the financial serves sectors we are told what is needed is liquidity & stimulus to restore confidence & encourage growth - a (narrow form of) Keynsian response.

So its not so much Keynes has been rejected, but rather its only applicable when the rich are in trouble!

#economics