Wednesday, 25 July 2012

What would Keynes do?

Whether you regard yourself as a Keynesian or not, John Maynard Keynes is a towering economic figure. He made a major impact on economic thinking and government policy.

Some believe it is Keynesian policies that have caused our current problem. Others point out that not enough attention was given to Keynes's call for austerity in the 'good times' in order to be ready to spend money when the bust occurs.

John Gray over at the BBC website has a go at predicting what Keynes might say about the financial crisis.

Of course, we will never know what Keynes would say now but it is an interesting piece nonetheless.

Given that there is still a lot of arguments over Keynes's legacy and whether we need more stimulus in order to recover, it is well worth a read.

And just for good measure, here yet again is the Keynes vs Hayek rap!


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