Total Pageviews

Monday 6 May 2013

Mental Black Hole

http://www.abc.net.au/unleashed/4667484.html

"Japan's national debt is by far the highest in the civilised world, making the decision to allow the budget deficit to rise to more than 11 per cent in 2013 the boldest Keynesian move since Ronald Reagan's expansionary fiscal policies in the early 1980s."

Reading the word Keynsian and  Reagan in the same sentence dropped my mind into a mental black hole. Assuming we are comparing apples to apples, if it worked for Reagan why would it not work for Abe, in which case there is nothing experimental about it.The Keynsian strategy is a proven remedy for these macroeconomic circumstances, begging the question how the idiots at the IMF and EU can rationalise their austerity policies which are proven not to work. 

No comments:

Post a Comment