Europe’s new fiscal compact is seen by some as the death of Keynesian government spending. This column argues that such analysis is simply wrong. It says that there is still room for government spending in extreme situations, but that there are now more safeguards to maintain stability, reduce contagion, and placate German taxpayers.
Read it at Vox.eu
Europe’s new fiscal compact treaty does not outlaw Keynesianism and is a stepping stone to more progressby Jacob Funk Kirkegaard
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2 comments:
The author is a Research Fellow at the Peterson Institute for International Economics. No wonder he likes it. So Pete Peterson is funding austerity shops internationally. I guess I shouldn't be surprised. Puts the lie to P.P.'s stance of patriotic concern for the "fiscal health" of the United States, I think.
The Eurocrats do appear to be moving toward a more elegant, modulated austerity, though.
The Eurocrats do appear to be moving toward a more elegant, modulated austerity, though.
Keynesianism only when the system is breaking down and threatening to affect the top of the town.
But it's a step forward from being suicidal, I guess.
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