Tag Archives: Keynesian economics

Canada has surprisingly often been the place where the future happens first - and it’s happening again. Last Monday, Canadian voters swept the ruling Conservatives out of power, delivering a stunning victory to the center-left Liberals led by Justin Trudeau in a clear rejection of the deficit-obsessed austerity orthodoxy that has dominated political discourse across the Western world. The Liberals ran on a frankly, openly Keynesian vision, and won big.

At the risk of looking/sounding like some crazed religious fanatic usually seen carrying a sign or proclaiming: “Repent, the end is near,” I shall avoid the word “repent". To me, the rest of that proclamation appears accurate and reasonable, at least with regard to our economic condition. [Let me explain:] Words: 1896

Every textbook Keynesian solution to escape the [financial] black hole of liquidity entrapment [we are in] has been tried on a grand scale, and failed on an even grander scale but the solution is simple: renounce/write down all impaired debt, wipe out the "too big to fail" banks, and restrict the reach and political power of the remaining banks and Wall Street. Until we're willing to do that, then the liquidity trap will remain a black hole that the economy cannot possibly escape. [Let me explain.] Words: 1122