If the Treasury view prevails we will be back in the 1930s – which is precisely why their ‘balanced budget’ demands must be rejected Richard Murphy

"The Treasury view" that fiscal  responsibility requires balancing the budget led to the second leg down in the US during the Great Depression when FDR listened to the fiscal disciplinarians at the outset of his second term. Note that Keynes had published the General Theory in 1936, and FDR was already quite aware of Keynes. When FDR adopted the Treasury view in 1937, the recovery began to tank, and and he reversed his position in 1938. See, How FDR Learned to Stop Worrying and Love Keynesian Economics.

Tax Research UK
If the Treasury view prevails we will be back in the 1930s – which is precisely why their ‘balanced budget’ demands must be rejected

Richard Murphy | Professor of Practice in International Political Economy at City University, London; Director of Tax Research UK; non-executive director of Cambridge Econometrics, and a member of the Progressive Economy Forum