Welcome to the Vitus Capital Blog!
Notes to myself, possibly of interest to others.
-- Bill Northlich

Wednesday, June 22, 2011

Krugman - Keynesian success, despite dissing by ideologues

Bill Gross of Pimco calls for more fiscal stimulus and denounces the “anti-Keynesian” consensus. Now he tells us

But can we note just how bizarre our situation is? Keynesian economics has actually come through the crisis with flying colors. The only knock on it is the “Obama tried stimulus and it failed, neener neener” thing — but those of us who took our Keynesianism seriously warned literally from the beginning that the stimulus was far too small.

And yet in the political domain Keynesianism is seen as discredited, while various forms of crowding out/austerity is expansionary talk, which have in fact totally failed — look at interest rates! — have become orthodoxy.  [source]

No comments:

Post a Comment