One frequently hears statements that the stimulus package led to a lower level of unemployment or that it contributed to … Continue reading “Stimulus success stories should be treated with scepticism”

There is talk of recovery, but little reason for optimism. Government action may have cushioned the initial impact of the … Continue reading “US will pay a high price for Obama’s spending spree”

According to Keynes, sticky prices in markets lead to a phenomenon whereby we can get disequilibrium in the labour market … Continue reading “It’s government that gums up markets”

One of the strangest things about this recession is surely the shameless neglect of unemployment figures by the politicos, anxious to … Continue reading “Economic recovery? Not for the workers”

What one does is typically built around what one believes. This is as true of economic policy as of anything … Continue reading “Understanding the business cycle”

The word is getting out that Keynesian economics is worthless as a guide to policy. Criticisms of public spending are … Continue reading “Keynes versus the classics – the true story”

The Bank of England’s decision to pump an additional £50 billion into the economy, over and above the £125 billion … Continue reading “Quantitative easing: a case of being in the right place at the right time?”

What we call “Keynesian” economics is not some minor sub-division of economic theory but is the very essence of macroeconomics … Continue reading “The tragic failure of Keynesian economics”

Britain now faces one of the most serious fiscal crises in its peacetime history. One reason is that the UK … Continue reading “Britain faces worst ever peacetime fiscal crisis”