Consolidators versus Stimulators
The classical view of the economy, which Keynes set out to demolish, is not only alive, but in recent years has been dominant, feeding the belief that competitive markets can regulate themselves, will always provide as much employment as is wanted, and are immune to large-scale collapse. Now the believers are clamoring for fiscal consolidation worldwide.
https://prosyn.org/NX1ZNcT
LONDON – All intellectual systems rely on assumptions that do not need to be spelled out because all members of that particular intellectual community accept them. These “deep” axioms are implicit in economics as well, but, if left unscrutinized, they can steer policymakers into a blind alley. That is what is happening in today’s effort, in country after country, to slash spending and bring down budget deficits.