People have been backed into ideology --
Keynesianism and Modern Monetary Theory -- and ventured into uncharted territory.
Keynesianism fell out of favor during the stagflation of the 1970s, when both unemployment and inflation rose simultaneously in the U.S.
The three Italian authors of a new book called Austerity: When it Works and When it Doesn't present a radical challenge to textbook
Keynesianism.
Conversely,
Keynesianism cannot abide such monetary arrangements as the gold standard, which inhibit governmental plans for fiscal expansion.
In the long run we are all dead:
Keynesianism, political economy and revolution
Plain liberalism, libertarianism, Neo-liberalism on the one hand,
Keynesianism, neo-Keynesianism, institutionalism, post-Keynesianism, public choice on the other.
They share, in a somewhat mitigated but essentially similar form,
Keynesianism's privileging of consumptive preferences over productive purposes, and its reductive inability to think cross-generationally.
He confesses it when he says, "[m]y theory can comprise many of these things--Marxism,
Keynesianism, neoclassical economics--but not just adding it, but putting them in a very special argument.
France's Socialist technocrats appear to have concluded from the failed Mitterrand experiment with
Keynesianism in the early 1980s that domestic economic management was no longer possible, and that there was no real alternative to financial globalisation.
In Letter 1, Block congratulates Cochrane for his critical analysis of
Keynesianism, but also criticizes him for supporting a variety of this very viewpoint.
Under the plan investment in the economy through public works is the way to stimulate the economy and combat recession as envisaged by the founder of
Keynesianism, John Maynard Keynes.
The solution to the stagnation was the devising of "commercial
Keynesianism," which went beyond government-stimulated interventions to include tax cuts and low interest rates to generate business activity.