Nick, quantitative easing just is Keynesianism. (That dare not speak its name.) EVEN the ECB is now a little bit Keynesian. And it's the
only reason why we didn't have such a bumpy ride in the US. Because austerity was blunted by longer QE and a (not big enough) stimulus. Poor Europe.
OK. But you say THAT wasn't as bumpy a ride? Holy shit. Poor Europe indeed.
ReplyDeleteHowever, I'm not sure that just any QE can necessarily be called Keynsian, which is a word that gets thrown around a lot but is actually a more specific and detailed formula (though yes, it does of course include QE). We have absolutely nothing like it in the US, unless you count the way the Pentagon funds spending on military hardware, and we haven't since before we were born...and even that was "Keynes Light", which tasted great but was less filling. Jokes aside, until someone starts talking about funding industrial production with a tax on the wealthy (including research & development), there's no call to be using the K word. I'd love it if someone DID talk about that, but if anyone has, you're the first I'd be hearing it from.
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