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The Rise and Fall of Keynesian Economics

Paul A. SamuelsonJohn Cassidy’s remarkable interview with the Nobel Prize winner Paul Samuelson maybe best describes the rise and fall of Keynesian economics.

Since households need to deleverage, the idea of fiscal spending during periods of weak growth makes sense for non-mainstream economists like Prof. Steve Keen (see why) and for Nomura’s Richard Koo (see why).

Still, Keynesians led the world to two of its most unfortunate experiences, the 1970s stagflation and to the sub-prime bubble.

One remark: Samuelson calls himself a “post-Keynesian”, which is entirely different from the “Post Keynesians”, a movement that, as opposed to the neoclassical mainstream, wants to use Keynesian monetary theory not only for the short-run, but also for the long-run.


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George Dorgan
George Dorgan (penname) predicted the end of the EUR/CHF peg at the CFA Society and at many occasions on and on this blog. Several Swiss and international financial advisors support the site. These firms aim to deliver independent advice from the often misleading mainstream of banks and asset managers. George is FinTech entrepreneur, financial author and alternative economist. He speak seven languages fluently.
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