Imagining a Keynesian Revival
The economic shocks of the past two decades were not freak occurrences but rather the product of a profoundly flawed and corrupt system. But narrowing the policy discussion to a binary choice between market fundamentalism and protectionism overlooks the potential for constructive leadership.
SALZBURG – In 2009, while the world economy was still reeling from the global financial crisis, Nobel laureate economist Robert Lucas observed that “everyone is a Keynesian in the foxhole.” The implication was that, when an economy is faced with a severe economic shock, conventional fiscal policy norms must take a backseat to stabilization.