4 ms·
> Has Keynesianism ever been shown to have failed? I've not seen evidence of this. What evidence would you accept? How does one falsify Keynesianism? High inf
by jquery 15y ago
> Has Keynesianism ever been shown to have failed? I've not seen evidence of this.
What evidence would you accept? How does one falsify Keynesianism? High inflation? A bearish currency? High unemployment?
- rvkennedy 15y agoYes - high inflation (i.e. too high, not 5%), substantial currency devaluation (not hyperinflation but worse than a mere annoyance), and especially high unemployment - higher than we have now under the market-focused orthodoxy. But it needs to be compared to a useful control. For example, if it's limited to the 1970's, it would be hard to isolate from the impact of the oil crisis. And if it's limited to the US/Britain, you need to explain why the high-spending tiger economies can be discounted.