Evening Must Read: Mark Thoma: The Attack of the Anti-Keynesians

Mark Thoma: The Attack of the Anti-Keynesians: “When the Great Recession hit the economy… mainstream macroeconomic models… in use… provided little insight…

…and… little guidance… [to] fiscal policy in particular. So we should not have been surprised when many people turned to a model that had been developed to address precisely these types of questions, the Keynesian model, for guidance. Was this guidance useful?… The insights and advice… turned out to be remarkably good…. Modern macroeconomic models were not up to the task when they were needed the most, and nobody should be faulted for turning to the ‘old fashioned’ Keynesian model… for guidance…

March 24, 2015

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