Will the real Keynes stand up, not this sad caricature?

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Will Hutton wrote under the above title today.

I think that the article is important for three reasons. The first is that someone like Hutton can say that he is a Keynesian. It has been hard to do that for a long time.

The second is that he seeks to shatter the myth that Keynesianism is simply about high government spending. It isn't. It is about counter cyclical spending.

The third is that he draws out the disconnect between the financial and real economies which I refer to often on this blog and makes clear that this is the root cause of the problem with relying on monetary policy alone.

It's worth reading.